Start saving now because time truly is on your side. When you are young, the tendency is to put saving for retirement on the back burner and not worry about it. But starting early lets you take advantage of
compounding. Compounding happens when your investments earn money and instead of withdrawing that money and spending it, you reinvest it, adding to your investments.* Make a decision to start saving now.
*Investments will fluctuate and when redeemed may be worth more or less than when originally invested.
In your 30s
Don't lose sight of your long-term goals. During this busy time of life, there are probably a million things vying for your money. Try not to get overwhelmed. Focus on the basics like reducing debt and increasing
*Diversification does not guarantee against loss, it's a method used to manage risk.
In your 40s
Have you started thinking about retirement yet? Since you are likely in your peak earning years, now is the time to increase the amount you are saving and take advantage of investment opportunities.
Check out the retirement income projection tool to calculate your retirement income need and determine if you have a projected savings shortfall. You can also model different "what if" scenarios. Log into your account
to access this tool.
If you're in your 40s and haven't started to save for retirement, don't lose heart. There are still things you can do. First, start now! You still have time but will need to keep your options open. You may need
to consider working longer or taking on part time work in retirement.
Many people struggle with this decision. It helps to remember, while loans are generally available to pay for a college education (subject to various stipulations), they are not an option for retirement. Consider
your decision carefully.
In your 50s
It's time to get serious about planning for retirement.
What will retirement look like to you? Are you on track with your savings to make your plans a reality or do you need to save more? Make sure you consider all of your retirement income
sources including Social Security and pensions, as well as your retirement savings.
If you are age 50 or older, you may be able to save more, tax-deferred, in your retirement savings plan. Consult your Summary Plan Description to find out if your plan allows catch up contributions.
As you finalize your retirement plans, there are details that you need to consider carefully.
How much will Social Security realistically provide and when should you take it? Have you factored in health care costs? Do you need to adjust your investments to a more conservative mix?
Social Security benefits can be collected as soon as you reach age 62. However, it's important to know that it may not be in your best interest to collect as soon as you're eligible. WHEN you begin collecting your
benefits has an important impact on the monthly benefit amount you'll receive during your lifetime.
While investing styles vary greatly, many experts recommend gradually shifting from stocks into bonds as you approach retirement age to move you to more conservative options to help protect the money you've accumulated.
But today retirement can last 20-30 years or more, so you may want to maintain a healthy dose of stocks well into retirement.
If you'd rather not have to worry about shifting your investment mix, your plan may offer an easy investment option such as Target Age or Target Date which will automatically adjust the mix of stocks, bonds and
cash to maximize your return and minimize your risk as you get older.
*Diversification does not guarantee against loss. It is a method used to manage risk.
In your 70s
Moving into retirement.
Retirement planning doesn't stop when you retire. Your goal now is figure out how to generate income and make your money last. You need to protect the value of your investments while letting
them grow enough to, at the least, outpace inflation.
A RMD is a mandated withdrawal from a retirement savings account, based on regulations established by the IRS. Congress and the IRS would like retirement savings to be used primarily for the purpose of retirement,
and not as a means to transfer money to plan beneficiaries. To help enforce this objective, they require an individual to take a distribution from their retirement plan account each year.