retirement saving

4 Critical Stages of Retirement Saving

December 28, 2021

DECEMBER 28, 2021: Have you ever heard about the four crucial stages of retirement saving? Even if you already have your own well-planned Retirement Strategy locked down, you may not have been aware that saving and planning for retirement can look very different at different stages of your life and career. For instance, budgeting for retirement at the start of your career may require certain changes or sacrifices distinct from those you may choose to make towards the very end of your career. As you progress in your professional life, be sure to follow these four critical stages of saving.

1. Starting To Save Diligently in Your Early Career

As you kick off your career, it’s important to always remember to save diligently for retirement. At this stage, you should: 

  • Set up an automated contribution to your employer-sponsored retirement fund
  • Try to save at least 10% to 15% of your annual income for retirement
  • Make small financial sacrifices elsewhere to ensure you’re building up your nest egg from a young age

2. Strategically Investing Your Savings Mid-Career

When you’re well into your career, learning the basics of strategic investment is key. Making the right money moves at this point could help you build a comfortable financial cushion. Consider investing in:

  • Mutual funds
  • Stocks and bonds
  • Real estate
  • CDs, or certificates of deposit
  • Life insurance policies
  • High-yield savings accounts

3. Boosting Savings Right Before Retirement

If you’re close to retirement and want to boost your nest egg one last time, there are several different ways to beef up your savings accounts. For instance, you could:

  • Cut back on your lifestyle to put as much additional cash into your retirement accounts as you can
  • Begin shifting to safer investments so you don’t risk losing your retirement savings to fluctuating markets
  • Consider opening new retirement accounts or investment accounts to diversify your retirement portfolio
  • Calculate your planned age for retirement and determine how much more money you’ll need to put away before then

4. Being Fiscally Responsible During Retirement

Once you’ve officially retired, you’ll still need to keep an eye on your budget and bank account in order to avoid running out of savings. To maintain your desired lifestyle well into your golden years, you may want to:

  • Write out a strict budget and do your best to stick to it
  • Cut out superfluous spending that could be eating up your savings too quickly
  • Run the numbers to make sure you can actually afford your desired lifestyle during retirement
  • Check in with your financial advisor every year to make sure you’re still making wise investments and spending your retirement savings at a reasonable and realistic pace

Whatever stage of your professional life you may currently be in, understanding the beneficial ways you can adjust your Retirement Strategy may help you move efficiently and effectively towards a financially stable retirement. These four critical stages of retirement saving can help you achieve your dream retirement lifestyle.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.

Our portfolio is extensive, ranging from various life insurance policies to our MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.