October is National Retirement Security Month, a good excuse to check in on your plan. Whether you're just starting out or already retired, the right move depends less on your age and more on what stage of your career you're in.
Early In Your Career
At the beginning of your career, the biggest advantage you have isn't income; it's time. Money contributed to a retirement account in your 20s or 30s has decades to grow, so you don't need to stress out with maxing out your annual contributions. Start with whatever percentage of your paycheck you can commit to consistently, and if your employer offers a match, contribute enough to get the full amount. That match is money you'd otherwise leave on the table.
Approaching Retirement
Once retirement is a decade or less away, the planning gets more specific. Estimate what your actual expenses will look like: healthcare, housing, and any debt you're still carrying. Paying down high-interest debt before you retire reduces the income you'll need to draw each month. This is also a good time to talk to a financial advisor about whether your savings and projected Social Security income will cover the retirement you're picturing.
During Retirement
Once you're retired, the goal isn't to keep growing your savings; it's to make sure it lasts. Figuring out how much you can withdraw each year without running out is a great place to start. Make sure you factor in healthcare costs and other unplanned expenses that may occur as you get older. Checking in on your budget every year instead of setting it once and moving on will help you stay prepared. What worked in your first year of retirement might not work in your tenth.
Wherever you’re at in your career, your entire retirement strategy doesn’t need a complete overhaul in October. Pick one thing: increase your contribution by 1%, request a copy of your latest statement, or schedule 20 minutes to review your budget.
Small, consistent adjustments compound over time, just like the savings themselves, and make a big difference in the long run.
*For informational purposes only.