You Can Save Enough To Retire - Here's How To Get Started

No one wants to work forever, yet nearly half of Millennials and Generation X people surveyed by USAA Life Insurance think they will never be able to afford to retire. A recent report by the Center for Retirement Research found 40% of people are on track for retirement, 20% know they are in trouble, and the other 40% are misjudging their funds, either thinking they are better prepared than they actually are or having enough but believing they don’t.

Anyone can save enough to retire if they know how. Workers Credit Union AVP and Financial Wellness Coach Esther Hall has tips to get your retirement savings off to a great start.

• Start saving early. Many young people think they have all the time in the world to save for retirement, but the sooner you start saving for retirement the longer your money can work for you. Starting young allows you to take advantage of compound interest, which is the interest you earn based on the principal plus the interest you’ve already earned.  Consider setting up a direct deposit so the money is automatically saved without you having to think about it.
• It’s never too late to save. Although earlier is better, you can always start putting away money for your retirement. Assess your current finances and create a budget. You may be surprised at the saving opportunities you find when you closely examine your statements. Can you bundle your insurance? Can you cut back on the number of streaming services you have? Every little bit you can save now makes a huge difference for your future.
• Take advantage of employer-sponsored plans. Many employers offer retirement plans, most commonly a 401k. Most employers may offer a match on employee contributions often up to a certain limit which is like getting free money to put towards retirement. Contribute as much as you can, and since it is tax-free money that is automatically taken from your paycheck, you are less likely to miss it. When you get a raise or bonus, consider adding the new funds to your 401k.
• Consider opening an IRA to supplement your savings. An IRA is an Individual Retirement Account like a 401k that you would manage for yourself. Bear in mind, the maximum contribution isn’t enough to retire on alone, therefore, if possible, it should not be your only retirement savings option.
• Set clear retirement goals and estimate how much money you'll need. Before you retire, you need to decide if you want to live the same way as you did when you were working. For example, will you want to live in the same size house with the same expenses or do you plan to downsize? Will you want to take vacations every year? This will help you determine a budget for this phase of your life and save accordingly. Regularly review this strategy and a few years prior to your retirement, consider “test driving” your desired retirement budget to see if you can live for a full year on it comfortably and to make sure it will be sustainable in retirement.

There are many things to consider when planning for retirement.  If you need help or guidance, don’t hesitate to reach out. Workers Credit Union financial coaches can help you set a budget and understand your finances. For more complex matters, such as deciding where to invest your money or whether to open a Traditional IRA or a Roth IRA, we can connect you with a certified financial advisor at Workers Credit Union Retirement Planning and Investment Center.

*Disclaimer

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. Atria Wealth Solutions, Inc. ("Atria") is a modern wealth management solutions holding company. Atria is not a registered broker-dealer and/or Registered Investment Advisor and does not provide investment advice. Investment advice is only provided through Atria's subsidiaries. CUSO Financial Services, LP is a subsidiary of Atria. Fixed insurance products are offered through CFS Insurance & Technology Services, LLC.

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