Page 29 - BusinessWest March 17, 2025

retirement? Deciding when to retire can dramatically affect how much you’ll need, especially if you plan to stop working before becom- ing eligible for full Social Security benefits.
What lifestyle do you want in retirement? Are you dreaming of frequent travel, a quiet life filled with hobbies, or something in between? The more you can clarify your lifestyle goals, the better you’ll understand the financial resources you’ll need to enjoy your future comfortably.
Where will you live? Do you plan to stay put, downsize, or relo- cate? Your choice of location impacts cost of living, taxes, and poten- tial housing expenses, including maintenance if you own a home. These variables can influence how much you should save.
Will you retire with debt? Are there ways to limit the debt you’ll retire with? Ideally, entering retirement with minimal or no debt allows more flexibility with your income. The more debt you carry, the more challenging it may be to cover expenses comfortably in retirement.
What about healthcare when you retire? Healthcare and long- term care can be significant expenses. The average retiree may need upwards of $157,000 for healthcare alone, and those costs typically rise with age and inflation.
While these may not be the only factors to consider, they’re valu- able starting points for refining your magic number and setting a solid foundation for retirement planning.
Seven Actionable Ideas for Retirement Savings
Reaching your retirement goals often requires more than knowing general milestones or understanding personal factors. Here are seven tips to help you stay on course and save strategically.
Start saving early and maximize compound growth. The earlier you start saving, the more time your investments will have to grow. Even small contributions early on can balloon over time.
Maximize employer contributions. If your employer offers a match on your 401(k) or another retirement plan, aim to contribute enough to capture the full match. It’s essentially free money for your retirement.
Set aside a percentage of your salary. Commit a portion of your salary directly to retirement savings — ideally, around 15% of your annual income, including any employer match. Hitting this target can keep you on track toward long-term goals.
Diversify your investments. Balance your portfolio with a mix of stocks, bonds, and other assets. Diversification can better insulate your retirement savings from volatility, especially as you get closer to retiring.
Reassess and adjust savings regularly. As life changes, you may need to reassess your savings plan and retirement contributions. That’s why it’s important to regularly revisit your retirement-savings strategies to make sure they still work for you and are the best options for achieving your objectives.
Plan for unexpected expenses. Life is full of surprises. Setting up an emergency fund can help you deal with any unexpected expenses, so you don’t have to dip into your retirement savings prematurely.
Keep track of your retirement income sources. Estimate your monthly retirement income from Social Security, pensions, and per- sonal savings. Then, compare this with projected monthly expenses in retirement to see if your income will meet your needs. This will give you a clearer picture of your future financial landscape.
Next Steps for Achieving Your Ideal Retirement
Building the retirement you envision takes careful planning and a steady commitment to saving. It requires understanding how retire- ment savings work, clarifying your goals, and adopting smart strate- gies to secure your future.
The good news? You don’t have to do it alone. Partnering with an experienced financial professional can provide valuable guidance, helping you discover effective strategies tailored to your unique retire- ment goals. BW
Andrew R. Beaudry is the registered principal, and Ryan T. Cummings is a financial advisor, at Private Financial Design, LLC in South Hadley.
“Building the retirement you envision takes careful planning and a steady commitment to saving. It requires understanding how retirement savings work, clarifying your goals, and adopting smart strategies to secure your future.”
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