Retirement- ready: Four steps to keep your savings on track.
Everyday life gives us plenty of reasons to save less than we would like. But with retirement on the horizon, it’s more important than ever to make saving and investing a top priority. These steps can help. We believe that most retirees will need to replace 75% of their preretirement income to maintain their lifestyle throughout retirement. Some of that will come from Social Security and possibly a pension, but the rest will have to come from retirement savings and other assets. We suggest that retirement savers should save and invest 15% of their income each year . GIVE YOURSELF MORE TIME If you’ve fallen behind with saving, these strategies may help close the gap: If you’re able to work past age 65, use that earning window to continue to grow your nest egg. Delaying Social Security benefits until age 67 or later will increase your retirement income from Social Security. MAKE EVERY DAY COUNT Life is full of things you can’t control, but saving for retirement is something you can. Like any long-term goal, the best strategy is to stick with it. Instead of thinking of saving as an expense, consider it to be an investment in your future lifestyle. WHAT YOU CAN DO NOW Estimate your retirement readiness by calculating your Confidence Number ® score. Log in to your account atrps.troweprice.com .
RETIRE WITH CONFIDENCE ®
TRY THESE STEPS: 1 Take advantage of the plan. If you aren’t already, contribute 15% or more of your pay annually to your plan account. It’s one of the best and most convenient ways to save for the future. 2 Take advantage of any employer contributions to the plan. They count toward that 15% savings goal. 3 Increase your savings rate annually. If you can’t save 15% or more right now, increase your savings rate once every year by 2% (or more). Some plans let you do this automatically. 4 Make catch-up contributions. If you’re 50 or over, you can contribute above the annual IRS limit on workplace retirement plan contributions. It can help cover any gaps in your savings history.
(continued on back)
Made with FlippingBook interactive PDF creator