Saving for retirement is not a “set it and forget it” type of approach. It helps to review your plan annually to make sure it’s still relevant to your lifestyle and spending habits. If you’ve already been setting funds aside, but still have a few years until you put the retirement wheels in motion, here are two questions you can periodically ask yourself to help provide confidence your plan is still accurate and relevant.
Am I still saving enough?
Your retirement plan should be flexible, reflecting not only your current expenses but future ones as well. Take a moment to re-evaluate the amount you’re saving. Look over some of your expenses. Are there any new expenses that have popped up that you want to account for in the future?
If so, it’s important to discuss these with your financial planner so they can be incorporated into your current plan.
“Potential retirees should have a grasp on their expenses leading up to retirement and work with their planner to understand how those expenses might change once transitioned,” said Steve Cantillo, Wealth Manager at Doyle Wealth Management.
What improvements can I make to my plan?
Review your investments with your financial advisor. Are you still comfortable with the amount of risk being taken? Maybe your risk comfort level has changed due to recent life events, or maybe you are a more tax-conscious investor.
“Developing a retirement plan should provide guidance on your ability to cover your retirement income needs from savings and other income sources. Everyone’s situation is different and you should consult with a Certified Financial Planner™ to make sure your savings strategy is consistent with what you’re looking to accomplish in retirement,” said Cantillo.
And what you’re looking to accomplish might change, which is why it can be helpful to ask yourself these questions every year while you’re saving for retirement, helping to reduce the chance of any financial surprises.
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