How to Choose the Best Retirement Strategy for You

February 16, 2023

Retirement planning is easy to put on the back burner when you’re in your 20s and 30s but you need a retirement strategy early on. Once you get older, though, you may wish you’d started planning for retirement sooner. Regardless of your age, choosing a retirement strategy is never too soon — or too late.

Picking the Ideal Retirement Strategy for You

If you’re wondering how to know the best retirement strategy, consider the following factors that may impact your options.

Identify Your Retirement Goals

The first step to choosing a retirement strategy is identifying your unique retirement goals. Do you want to be able to fund your children’s or grandchildren’s college education? Are your more concerned with eliminating debt before you retire? Consider questions like these to determine your priorities and choose your path as you develop a retirement plan.

Set a Budget for Saving

Next, you’ll need to set a budget for your retirement savings. Experts suggest that you should plan to live off 70% to 80% of your income before retirement. This figure relies on the assumption that your expenses will be lower than when you were working, though, so it’s best to save too much rather than too little. Some studies suggest that retirees spend more than those who are still working. Once you’ve established a budget for your retirement goal, you should automate your savings by setting up regular transfers to your retirement account.

Consider What’s Best for Your Family

When strategizing your retirement plan, it’s essential to consider how your family plays into your plans. For example, if your spouse has a 401(k) through their employer, it may be an excellent strategy to make joint contributions. Similarly, if you want to retire by 62, you should talk to your spouse to ensure their goals align with yours. Mismatched retirement goals are a recipe for disappointment. However, you and your spouse can work together to implement your retirement plan successfully.

Assess Options for Your Employment Status

It’s worth considering, too, that different employment arrangements will come with different options for retirement savings. If you are self-employed, you won’t have the option to contribute to an employer-subsidized 401(k), but you will be able to open a SEP IRA, which has many benefits of its own. Research the various types of retirement accounts that you can opt into based on your employment status, and choose the one that’s the best fit for your unique retirement strategy.

Stick To Your Retirement Strategy

The best retirement strategy is the one that you can stick to. No matter how much you plan, your plan will probably flounder if you don’t commit to it fully. It means setting a schedule for your savings, automating transfers, and making financial decisions based on their impact on your retirement strategy. If you follow these steps, you can turn your strategy into reality, establish a financially secure future, and enjoy a comfortable retirement.

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 annuities to support your financial needs no matter what stage of life you’re in.