For most workers, retirement is the ultimate goal. It’s your time to live life as you want, free from a work schedule and career obligations. You can wake up every morning and set your schedule. Or you can simply relax and enjoy your friends and family.
But what if you’re not looking for more free time? You might be anxious to retire from your current position, but you’re not excited about having an empty calendar. You feel like you still have skills and knowledge to offer, so you don’t want to spend your remaining years sitting at home.
Are you one of the 59 percent of Americans concerned about retirement income? It’s an understandable concern, especially if you’ve gotten off to a late start in the planning process. The good news, though, is it’s never too late to start planning and saving for retirement income.
According to a recent survey from Gallup, Americans’ number one financial concern is that they won’t be able to afford retirement. 59 percent of respondents said they were more worried about retirement than any other financial issue, including things like being unable to pay for medical care and being unable to get out of debt.1
If you’re like many working Americans, your 401(k) may be one of your largest assets. If you regularly contribute to your plan and even receive matching contributions from your employer, your 401(k) balance can accumulate quickly.
Your 401(k) plan is designed to serve as a retirement savings vehicle. To encourage long-term savings, 401(k) growth isn’t taxed as long as the funds stay in the account. That tax deferral can often help funds compound at a faster rate than they would in a taxable account. You pay taxes on your 401(k) funds when you take distributions, and if you take a withdrawal before age 59½, you could also face a 10 percent early withdrawal penalty.
Benefit enrollment season is coming up. Even if you don’t need to enroll in new benefits with your employer, it is a great time to review your current benefits and see if any changes are necessary.
Unsure which changes you need to make? Choosing the right employer benefits depends on your unique needs, goals and financial situation. However, if one of your primary goals is to save more money for retirement, then there are a few changes or adjustments you may want to consider.
Last year marked a big milestone for the millions of Americans who make up Generation X: they turned 50. Generation X is generally considered to consist of Americans born between 1965 and 1980. Today, they range in age from 35 up to 51. Welcome to middle age, Gen X!
Middle age means retirement is rapidly approaching. If you’re nearing 50, now may be the time to take a fresh look at your retirement income strategy, and to determine what changes you might need to make so you can maximize the final years of your career.
Do you dream of retiring in a foreign country? Maybe to enjoy the warm weather of Central America? Or perhaps to the Italian countryside for delectable food and wine?
Retirement is your time to live life on your terms. If you’ve always dreamed of living in a foreign country, you should certainly explore any opportunity to do so. However, retiring abroad brings a number of complexities and challenges you may not face if you retire in the U.S.