Planning for Retirement: When and How to Make It a Reality
Retirement: the word may seem like a distant concept early in your career, but as time passes, it transforms into a tangible goal. Planning for retirement isn’t just about saving money—it’s about ensuring financial security and creating a roadmap for the life you envision. At First United Bank & Trust, we’re here to guide you every step of the way.
How Much Money Will You Need to Retire Comfortably?
Determining how much money you’ll need to retire can feel overwhelming, but breaking it down into key factors can simplify the process:
- Inflation: Rising costs can impact your regular expenses, from daily living needs to healthcare and travel.
- Life Expectancy: With the average U.S. life expectancy at 78 (according to the CIA’s World Factbook), you may need to prepare for decades of post-retirement life.
- Annual Spending: For example, retiring at age 67 with $40,000 in annual expenses could require over $4 million in savings.
Nearly 50% of Americans don’t feel confident they’ve saved enough, according to the Employee Benefit Research Institute. Start early, set realistic goals, and explore investment options that grow with your needs.
Don’t Forget Social Security
Social Security plays a significant role in retirement planning. The Social Security Administration provides tools like calculation tables to help you estimate your benefits and plan accordingly. If you’re considering retiring before age 62, these benefits may be reduced, so understanding your options is critical.
When Is the Right Time to Retire?
Choosing when to retire is about more than finances. It’s a deeply personal decision that depends on your goals, lifestyle, and relationships:
- Do What You Love: Some people continue working well into their 70s or beyond because they find fulfillment in their careers. As The Wisdom Journal highlights, there’s no rule that says you must retire if you’re passionate about your work.
- Consider Your Family: Married couples often face unique challenges, like coordinating retirement timelines. A Fidelity study found that these decisions can lead to friction if one partner retires while the other continues working. Open communication and joint financial planning are key.
A Real-Life Perspective
Take Deborah Ewing, for example, who shared her story with The Wall Street Journal. She and her husband had differing views on retirement. While she plans to work as long as she can, her husband’s retirement hinges on their children finishing college. This dynamic is a reminder that retirement is not just an individual choice but one that affects the entire family.
Start Your Retirement Planning with First United Bank & Trust
Retirement may feel like a distant goal, but the sooner you start planning, the more prepared you’ll be. At First United Bank & Trust, we offer personalized financial solutions to help you meet your retirement goals. Explore our retirement savings options, schedule a consultation with one of our advisors, or visit your nearest branch to learn more about how we can help you build a secure future. Plan today for the retirement you deserve. Contact us to get started!