Retirement Goals by Age

Late Career (Ages 50-60) – Maximizing Savings

As retirement gets closer, it’s time to make the most of your remaining working years. This phase is full of opportunities to ramp up your savings and fine-tune your plans, especially if you’re 50 or older. Take a close look at your investments to ensure they still align with your goals, and make adjustments as needed. It’s also smart to prepare for unexpected expenses or health issues, which may become more common as you get older. Here are some priorities to keep in mind:

• Catch-Up Contributions: At age 50, you’re eligible for additional contributions to retirement accounts that will boost your savings.

• Plan for Healthcare: Look into Health Savings Accounts (HSAs) and begin estimating your healthcare needs post-retirement.

• Social Security: It’s a good idea to start strategizing when to begin claiming Social Security benefits. Delaying claims can sometimes lead to a higher monthly payout. Figure out how much you can expect from that source of income.

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Pre-Retirement: Fine-Tuning the Plan (Ages 60-65)

Retirement doesn’t have to mean completely stepping away from the workforce. These days, many people ease into it by switching to part-time, flexible, or remote jobs. It’s a great way to keep earning an income while transitioning into a more relaxed, retirement-focused way of life. As you get ready for this exciting new chapter, here are a few things to keep in mind while fine-tuning your plan:

• Set a Retirement Date: Take some time to decide when you’d like to retire by setting a target date that aligns with your savings, lifestyle goals, and Social Security plans.

• Enroll in Medicare: Don’t miss this step at 65 to cover your healthcare needs. It’s essential to understand your options and select coverage that aligns with your healthcare needs.

• Adjust Your Risk: Consider shifting to a more conservative investment approach as you near retirement.

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The Next Chapter: Your Retirement (Ages 65+)

Once you retire, it’s time to sit back and enjoy the fruits of your labor. You’ve spent years saving and planning for this moment, and now it’s time to relax and embrace the lifestyle you’ve worked toward. However, while you’re enjoying your newfound freedom, it’s also important to think about how to manage your finances to ensure that your retirement lasts as long as you do. Here are a few key things to consider:

• Sustainable Withdrawals: It’s important to make sure you don’t outlive your savings. A safe withdrawal strategy, like the 4% rule, suggests you can take out 4% of your savings each year without running out of money too quickly.

• Staying Flexible: Life changes, so it's important to keep reviewing your financial plan. Unexpected expenses or changes in health can shift your needs.

• Tax Strategy: Keep an eye on how your withdrawals from retirement accounts will be taxed, and work with a professional to manage that.

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From saving early in your 20s to fine-tuning plans in your 60s, each stage is crucial for a secure retirement. Whether building wealth, maximizing catch-up contributions, or planning for healthcare and taxes, every decision brings you closer to retirement you’ve worked so hard for. Stay flexible, review your plan, and prioritize your goals to make the most out of your savings.

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