Planning for retirement amid all the changes caused by the coronavirus pandemic might seem surreal. However, it is exactly the right time to start planning. The sooner you start, the greater the opportunity you’ll have to reach your retirement goals.
Here are some steps to help you achieve your overall objectives:
- Review your current financial situation by assessing your income and assets versus your expenses and liabilities.
- At first, determine a realistic amount to contribute regularly to your employer-sponsored qualified retirement plan, e.g., a 401(k) plan. Over time, try to maximize allowable contributions to your savings plan and take advantage of the company match, if offered.
- You can contribute up to $5,000 into a traditional Individual Retirement Account (IRA) or Roth IRA. Earnings for both traditional and Roth IRAs have the potential to grow on a tax-deferred basis.
- To the extent you can, work toward reducing your debt. Pay off large bills as soon as possible. Curb your spending to avoid taking on any new debt that could carry over into retirement.
- Consult with a qualified professional about life, health, and disability insurance policies to determine the amount of coverage you would need in case of unforeseen events, to protect yourself without having to tap into your savings.
- Find out how much you can expect to receive in retirement from pension plans, veterans’ benefits or Social Security. To get an estimate on your future Social Security benefits, visit www.socialsecurity.gov.
- Analyze which expenses are likely to decrease after you retire (clothing, commuting, etc.), which are expected to increase (medical, travel, etc.) and plan accordingly.
If you adhere to your checklist, you may see your savings increase as you get closer to reaching your retirement income goals. Remember, it is never too early to start planning for your future. At Popular, we can guide you through retirement planning For assistance, contact us at firstname.lastname@example.org.
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The information provided is for educational purposes and for your independent consideration. This information does not contain, constitute or provide individual tax, financial, or investment advice. This material should not be considered as a recommendation of any particular security, strategy or investment product or service. Particular investment or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. Readers are urged to seek professional advice with respect to their specific financial, legal, tax, and investment matters. Investment products are not insured by the FDIC, are not deposits or obligations of and are not guaranteed by Banco Popular de Puerto Rico or its subsidiaries or affiliates and may lose value.