Retirement Strategies When You’re Over 57
You’re in the home stretch – retirement may be only five to 10 years away. If you aren’t sure how much you’ve saved for retirement, or how much you should save, now is the time to get your retirement plan in order. Use these retirement strategies to map out your next move.
Determine Your Need
It is estimated that you may need 60 to 100 percent (or more) of your final year’s salary each year during retirement to maintain your current lifestyle. Start by asking three questions:
- How much do I need?
- Is my saving plan sufficient?
- Will Social Security be enough?
Set Saving Goals
Calculate what you have saved already and decide how much longer you plan to work. After factoring in potential Social Security benefits, you can start saving in vehicles like:
- A savings account at your local bank
- Money market accounts
- Mutual funds
- Your employer’s 401(k) or other retirement plan
Invest Your Savings
Over time, money grows. If you’ve gotten a late start saving for retirement, consider how much risk you are willing to take with your money. In general, the higher the risk level you are willing to assume, the greater the potential return on your investment.
Ask yourself if your money is earning as much as it could.
Look at where your money is invested. By moving some of your money in a savings account to mutual funds or an annuity, you may be able to earn more. The following products may help you save for retirement more effectively:
- Employer’s 401(k) or other retirement plan (if applicable, contribute at least enough to receive the maximum match)
- Mutual funds
- Cash values from insurance certificates
Buy the Right Products
It might seem odd to spend money in order to make it, but it’s true when it comes to saving for your retirement. Annuities and mutual funds can help you plan for retirement while life insurance can help you prepare for the future:
Life insurance – If you are married, an unexpected passing could derail your retirement plan so you should consider protecting your income with life insurance certificates that build cash values.
Annuities – Annuities provide future sources of income and possibly offer certain guarantees. Settlement options allow you to create an income stream that you can’t outlive.
Mutual funds – Mutual funds expose you to the stock market by enabling you to invest in a group of stocks or bonds that match your risk preferences.
Think of WoodmenLife as your partner in reaching your financial goals. From saving for retirement with mutual funds and annuities to protecting your family with life insurance, we can help1.
- You should consider the investment objectives, risks, charges, and expenses of variable annuities and mutual funds carefully before investing. Call Woodmen Financial Services, Inc. at 1-877-664-3332 for a copy of the prospectus which contains this and other information about the annuity or mutual fund. You should read the prospectus carefully before investing.