We all have the best intentions when it comes to planning ahead, but sometimes saving for retirement sneaks up on you. If you’re starting retirement savings at 40, no worries; follow these steps to start making up for lost time.
To maintain your current lifestyle, you may need 60 to 100% (or more) of your final year’s salary each year during retirement. Start by asking three questions:
Determine how much money you need to save now to maintain at least 60% of your current income during retirement. Look at your monthly budget and set aside as much as you can toward your retirement saving goal. Once you have an amount, consider how investing that money may make it grow.
At a minimum, your retirement saving needs to keep pace with inflation, but you’d like it to grow faster than that. Products to help you save for retirement include:
Mutual funds and variable annuities expose you to the potentially higher returns of the stock market by taking in more risk. There, your money may grow faster than it would if you put your money into a product with a fixed interest rate, like a CD or savings account.
Don’t overlook your employer’s retirement plan; if your employer matches contributions, contribute at least enough to take advantage of the maximum match.
It might seem odd to spend money in order to make it, but it’s true when it comes to starting retirement savings at 40. Annuities and mutual funds can help you plan for retirement, and life insurance can help you prepare for the future.
Annuities – Annuities provide future sources of income and possibly offer certain guarantees. Through this contract with a life insurance company, you pay premiums in exchange for regular payments to create an income stream that you can’t outlive.
Mutual funds – Mutual funds allow you to invest in a group of stocks or bonds and can offer lower risk options if you are new to the stock market.
WoodmenLife is your partner in achieving your financial goals. We can help you protect your family with life insurance and save for retirement with mutual funds and annuities1.
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.
We’ve been helping to protect the financial future of families like yours, making a difference in hometowns across America and honoring our country since 1890. As a not-for-profit life insurance company, we put money back into the community. We’re here when you need us most.Learn More About WoodmenLife