Retirement Planning with Less Stress

It’s hard to know if you’re doing enough to save for retirement.

Achieving your retirement savings goal means hitting several moving targets:

• How much will you need for living expenses?
• How much will health care cost?
• How long will you be able to work?
• How long will you live?

We have less control over these outcomes than we’d like to admit. So rather than worry about an uncertain future, focus on what you can do today, this month and this year to enhance your savings for retirement.

Make saving for retirement automatic

Setting up automatic contributions from your paycheck to your 401(k) or your checking account to your IRA will help you make steady progress toward your retirement goals. Whether it’s weekly or monthly, every dollar makes a difference!

Contribute the Maximum if You Can

Learn the annual contribution limits for each retirement account you’re eligible for. Then, divide that amount by your number of annual paychecks and make that contribution automatic.

For example, if you’ll be younger than 50 all year, you can put up to $7,000 in an IRA. If you get paid biweekly, divide $7,000 by 26, and $269.23 is how much your automatic contribution should be.

Step Back if Needed

Sometimes people lose their jobs, need cancer treatment or have kids. When your income drops, your expenses shoot up or both, don’t beat yourself up if you can’t save as much for retirement.

Set a new, realistic goal, no matter how simple. It could be just to to avoid debt so you can ramp up your contributions again when your finances improve.