Saving in Your Later Years

Saving for Retirement When You're Over Forty

'Over the hill' references don't apply to you – you can still do just about anything, including save for retirement. Follow these steps to start making up for lost time.

Determine Your Need

To maintain your current lifestyle, you may need 60 to 100 percent (or more) of your final year's salary each year during retirement. Start by asking three questions:

  • How much do I need?
  • How much have I saved?
  • Will Social Security be enough?

Set Saving Goals

Determine how much money you need to save now to maintain at least 60 percent of your current income during retirement. Look at your monthly budget and set aside as much as you can towards your retirement saving goal. Once you have an amount, consider how investing that money may make it grow.

Start Investing

Taking money out of your paycheck and putting it in an envelope in your closet won’t work. 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, and can therefore possibly allow your money to grow faster than it would in a fixed product.

Don't overlook your employer's retirement plan; if your employer matches contributions, contribute at least enough to take advantage of the maximum match.

Buy the Right Products

It might seem odd to spend money in order to make it, but it's true when it comes to saving for your retirement. Annuities and mutual funds can help you plan for retirement and life insurance can help you prepare for the future.

Life insurance – Life insurance is unique in its ability to replace income when your beneficiaries need it most: to fund funeral costs, endow a favorite charity and provide for family members.

Annuities – Annuities provide future sources of income and possibly offer certain guarantees. Settlement options allow you to create an income stream that you can't outlive.

Mutual funds – Mutual funds expose you to the stock market by allowing you to invest in a group of stocks or bonds suited to your risk preferences.

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 annuities.

WEB77 - 2/1/2017

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