brizmaker / iStock.com
Our Promise to You
At GOBankingRates, we prioritize delivering impartial and data-backed insights into financial products. Our assessments are crafted independently of our advertisers’ influence. Discover more about our editorial guidelines and review practices.
20 Years
Guiding Financial Growth
Expert Insights
Trusted by
Millions Worldwide
As a retiree, I often reflect on my journey to ensure retirement longevity and financial security. Many spend decades working but may realize too late that their savings fall short when they wish to stop working. In fact, a 2024 AARP survey reveals that 20% of individuals aged 50 and above have no retirement savings, with more than half worrying about outliving their funds.
In a conversation with GOBankingRates, Frank H., who was better off than many, shared lessons from his retirement planning experience. He outlines three things he would alter if he could start again.
Strategic Financial Planning for Retirement
Frank recalls, “Back after college, retirement savings options weren’t as diverse as today. The lack of a clear plan meant I set aside funds passively, hoping they’d complement my Social Security benefits.” Transitioning to today, his son’s meticulous approach exemplifies modern financial planning: setting a retirement target and calculating necessary monthly savings based on historical returns.
Comprehensive planning is crucial for retirement. By understanding required monthly income for your preferred lifestyle, you can establish how much to accumulate before retiring.
Leverage Roth Accounts for Tax Efficiency
Reflecting on missed opportunities, Frank mentions, “I wish I had discovered Roth accounts earlier.” While traditional retirement accounts like 401(k)s and IRAs lower your current taxable income, they result in taxable withdrawals during retirement. Conversely, Roth accounts eliminate future tax liabilities, allowing tax-free withdrawals during retirement.
Understanding these differences empowers you to optimize your retirement strategy.
Consider Working Longer for a Stable Retirement
Frank shares, “Though I felt ready to retire, I overlooked the financial benefits of delaying Social Security.” Those who start collecting benefits at 62, rather than waiting until their full retirement age, can face a 30% reduction. Conversely, deferring until age 70 increases benefits by 24%, proving advantageous.
Assessing these details can guide you in making informed retirement decisions.
Learn from Frank’s insights to enhance your retirement journey and secure your financial future. Explore more strategies here.
Discover more from Make Money Online and Work From Anywhere
Subscribe to get the latest posts sent to your email.
