If youʼre worried you havenʼt put enough aside, these strategies may help get you on track.
When I first sit down with clients, I try to gauge their level of retirement readiness by asking them the uncomfortable question: Are you pleased with the amount you have managed to put aside at this stage of life? Unfortunately, the answer is usually a variation of the word “no” (sometimes accompanied by a guilty or evasive look).
So how do your savings stack up?If youʼre wondering whether, or not, youʼre on track, you can access an array of online tools such as TIAAʼs Retirement Advisor* to help you determine if that nest egg youʼre building is enough to maintain your standard of living in retirement.
When using robo advisors like Retirement Advisor, youʼll want to know your after-tax retirement income goal, or what percentage of your final yearʼs salary youʼll want to replace. Determining that goal may seem daunting, but here's a tip: If you expect to be mortgage and rent free in retirement, then you can aim for a 70% income replacement ratio. If not, then your ratio is closer to 100%.
* IMPORTANT: The projections or other information generated by the Retirement Advisor tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.
If you discover a shortfall, you may want to consider these simple strategies to help you catch up:
So if youʼre among the millions of Americans who fear they havenʼt been putting enough aside for retirement—donʼt panic. These six practical strategies have helped my clients feel more confident about maintaining their lifestyle in retirement—I hope you find them useful, too.
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