With the amount of options available to you as you save for retirement, it can be difficult to know where to start. However, the sooner you begin saving, the sooner you are putting money away towards your future. Working with a financial advisor to develop a retirement plan can provide a path that you can start with to prepare for the time when you are eventually ready to stop working. If you have questions, our team at Harvest Wealth Partners can discuss your options with you and answer your questions about what you will need to do to save for retirement.
Asking realistic questions will help you better understand what you will need to retire and when you will likely be able to do so. Many people are surprised to realize just how much money they will need to retire. While the number varies based on many factors, including your expenses and standard of living, it’s commonly recommended that you replace around 80% of your income for each year after you retire.
Making saving a habit will help give you time to set money aside so you can find strategies that encourage it to grow. Saving is a skill, but even a small amount put away can add up. The Department of Labor recommends giving yourself a plan to follow by setting savings goals that you can stick to.
There are many types of retirement accounts that you may be able to invest in. For example, your employer might offer a 401(k), a savings plan with tax advantages. Some employers will match a portion of the contribution you make to your 401(k).
According to the Social Security Administration, Social Security tends to replace about 40% of the average person’s pre-retirement income. While you will likely need to pull some of your retirement income from other sources, this is not an insignificant number. When you think about how Social Security works into your overall retirement plan, it’s also important to consider the age at which you wish to retire and whether you will be old enough to collect your full retirement benefit.
A financial advisor can discuss your overall plan with you and make recommendations on how to refine your strategies to better work towards your retirement goals. An advisor can also provide insight into other aspects of your financial future that you may not have considered, like planning for healthcare expenses or deciding if you would like to select a long-term care insurance plan.
While these steps can be a good starting point for many people to begin thinking about retirement, you may still have questions that you wish to discuss. Contact us today to make an appointment with one of our advisors at Harvest Wealth Partners.
Harvest Wealth Partners is committed to helping our clients work towards a successful future. We believe in your potential to understand the financial options that can lead you to your goals. Call us today to partner with our team. We look forward to continuing our mission for years to come.
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