Do you lack confidence in your retirement goals? You are not alone. In a survey conducted by the Employee Benefit Research Institute (EBRI), 34 percent of all workers surveyed feel less confident they could live
comfortably in retirement due to the impact COVID has had on the world’s economy. Many factors can contribute to a lack of retirement confidence –like not making enough money, making early financial mistakes, the reliability of Social Security, or saving enough for the unexpected in retirement.
Having confidence about retirement is one thing, of course, and preparation something else, though the two are logically intertwined. It is hard to deny that the best means of assuring retirement confidence is in establishing a solid foundation through a well laid-out plan.
Experiencing a positive retirement experience and living life on your terms in retirement is achievable by creating a retirement plan. Start your retirement planning by following these fundamental steps:
- Establish a retirement goal: Planning for retirement should begin years before the actual date arrives. Take time now to map out your retirement plan and revisit the plan as needed to adjust as lifestyle, life demands, health, etc. change your retirement plan direction and focus.
- Calculate how much money is needed: Take time to establish how much money you will need to achieve your retirement goal. Once you have determined your retirement plan, take the time to do research to determine costs associated with your goals (cost of living, health care, travel, etc.) to ensure you save enough to achieve your dream in retirement.
- Consider the present: Once you know what is needed for future financial security it is time to look at current spending and cash flow. You should look at your current income to debt ratio so current spending and savings can be properly addressed to take adequate measures to move you toward a stable financial retirement future.
- Look for opportunities: Taking advantage of all opportunities to save for your financial future. Look to employer provided programs offered to maximize on pre- and post-tax savings opportunities. Every dollar counts, start at the savings level your budget can handle and increase yearly if possible. You’ll be amazed how your retirement dollars will grow.
- Seek Help: Enlist the help of a UNC System retirement plan financial professional to help establish your retirement goals and make sound financial decisions. Financial professionals with CAPTRUST, Fidelity, and/or TIAA can help you build a personal budget, create a savings plan, and maximize your investment lineup to all ensure you meet your future retirement financial needs.
