career stages

Retirement Savings Strategies for Every Career Stage

November 23, 2021

November 23, 2021: Even if you have already begun planning for retirement, you may be wondering whether you need to adjust your plans depending on the current stage of your career. Although everyone’s Retirement Strategy may differ, there are certain tips that can help you maximize your savings without making the rest of your budget suffer at each phase in your professional career. For example, if you’re just starting out in your career, your guide to retirement planning may look different than those for mid-career or late-career professionals. Before you begin tweaking your retirement plans for your current career stage, take a look at these core tips.

Start Budgeting and Saving at the Beginning of Your Career

If you’re in the very early years of your career, now is the perfect time to learn all about budgeting for retirement. Including retirement savings in your budget from the get-go is a surefire way to build up an adequate nest egg over time. Make sure you:

  • Save at least 20% of each paycheck and put part of those savings into a specialized retirement account such as a 401(k) or a Roth IRA
  • Ask your employer if they sponsor any employee retirement plans
  • Budget carefully to avoid overspending and skimping on savings
  • Look for opportunities to work your way up the career ladder into positions that will allow you to put more money into savings

Make Smart Investments and Use Employer Matches Mid-Career

If you’re in the middle of your career, making the right investments with your current retirement savings, as well as continuing to sock away more savings, is essential. Now is the time to get the most out of your retirement money. You should:

  • Start thinking about the sort of lifestyle you may want in retirement so you know how much more you’ll have to sock away
  • Start shifting your retirement investments away from investments with low returns to those with potentially higher returns
  • Make the most of employer matches to maximize your retirement savings
  • Decide how much longer you’ll want to keep working until retirement time

Calculate Expected Expenses and Adjust Your Investments Before Retirement

If you’re approaching your golden years at a rapid pace, it’s important to know how much you expect to spend once you retire and adjust your savings and investments accordingly. At this stage, you may want to:

  • Lower your monthly expenses so you can put more money into your nest egg
  • Reconsider your current investments to determine whether they need to be diversified
  • Consider working a while longer if you still need to beef up your retirement savings
  • Invest in an Annuity with a locked in rate

Your exact Retirement Strategy may depend on which stage of your career you’re currently in. Whether you’re in the early phases of your career, in the middle or towards the end and getting ready to retire soon, there are some stage-specific planning tips that can help you ensure a financially stable and enjoyable retirement.

About 1891 Financial Life

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