Questions To Ask Yourself When Saving For Retirement
Are you saving for retirement? For many of us, saving for retirement is simply signing up for our employer's 401K or Thrift Savings Plan, choosing a contribution percentage, and calling it a day.
Related Topics
Are you saving for retirement? For many of us, saving for retirement is simply signing up for our employer's 401K or Thrift Savings Plan, choosing a contribution percentage, and calling it a day.
While that's a significant first step to saving for retirement, the truth is a vast majority of Americans aren't saving enough for retirement, and certainly not for the actual lifestyle they'd like to live when they reach that stage.
Here are some questions you should ask yourself when planning for retirement.
What type of lifestyle do I want to live when I retire?
This is the one single question that many people don't consider. Putting money into a 401K or other retirement account doesn't necessarily mean that you'll have saved enough when you hit retirement age.
So what does "retirement" mean to you?
Are you living in the same home? A smaller home?
Are you traveling or content with living a slow life of leisure?
Are you going to move to a different area? And if so, is the cost of living higher or lower?
There are many factors to consider when you retire. By thinking about these things before you retire, even knowing they could change down the road, you'll be better equipped to retire on your own terms.
Is what I'm contributing toward my retirement enough to support how I want to live in retirement?
Now that you've given thought to how you want to live in your retirement years, the question is, are you saving enough?
To accurately plan, gather how much you've already contributed towards your retirement, at what age you want to retire, and how much you want to have saved when you do. Then head to these retirement calculators from AARP to learn how to achieve your savings goal.
AARP Retirement Calculator: Are You Saving Enough
AARP: Retirement Nestegg Calculator
What is my complete retirement plan?
Seeing those numbers in black and white can be humbling and overwhelming. Especially if you recognize that what you've been contributing towards retirement isn't measuring up to how you want to live in retirement.
The good news is that there are more options and ways to achieve your goal than with your 401K or Thrift Savings Plans, like real estate and other savings vehicles and investments to consider.
Should I be saving enough for myself and my partner, spouse, or significant other?
If you're in a single-income household with a partner, it's essential to consider them in the equation. Women disproportionately don't have retirement savings. This is primarily an issue for women who choose not to work outside of the home. While that's a great choice, when making that decision as a family, ensure that you're accounting for that in your retirement years, as well.
Interchangeably, if your family decides Dad will stay home or if you have a child with special needs, plan accordingly when saving for your retirement.
How can I save for retirement when there are so many other things to save for?
There are indeed a lot of competing priorities when it comes to saving. Emergency funds, homeownership, education, and everyday present needs and wants. So how do you do it all?
You do what you can with what you've got. However, when trying to decide on prioritizing savings, you should remember these two things:
- Retirement is the one major life milestone that you can't borrow for.
- Retiring comfortably is a HUGE gift to your children and loved ones. Paying for their education is a nice gesture, but being able to retire and not worry about you is better.
Ready to set a goal and make a plan to retire on your own terms? Take the America Saves Pledge and choose "Retirement" to get support, communication, and tips directly from America Saves to help you on your savings journey!
Related Tags
CHECK OUT OTHER SAVINGS JOURNEYS FROM SAVERS JUST LIKE YOU
Saver Story: Set a goal, make a plan!
By Shannon
We've chosen Shannon as our Saver of the Month! Her approach to saving for her family’s dream home is a great example of how #ThinkingLikeASaver can look different for everyone, but has great payoffs and rewards.
Saving Early: Key to Successful Future
By Johnnie Lovett
For Johnnie Lovett, a Young Illinois Saver, saving has been a habit since he was a teenager. “As a teenag...
The Gift of Homeownership
By Quaneka Willis
Quaneka Willis, a single mother of three children, was receiving rental assistance through the Housing Au...
Budget like Nohemi
By Nohemi
Nohemi found out about America Saves a few years ago as an undergraduate at the University of Illinois at...
Another Dream Realized
By Mary Brown
Mary Brown was already a disciplined individual when she came to Wisconsin Saves coordinator Wisconsin Wo...
Saving With My Boys
By Kelly
Kelly has made saving a family effort. She started her boys saving early. “Probably 3,” Kelly told us, “when I started encouraging them to save because that’s when they started receiving small bills from family on the holidays.”
Budget like Nohemi
By Nohemi
Nohemi found out about America Saves a few years ago as an undergraduate at the University of Illinois at...
Saving Early: Key to Successful Future
By Johnnie Lovett
For Johnnie Lovett, a Young Illinois Saver, saving has been a habit since he was a teenager. “As a teenag...
Transforming “I Can’t Save” to “I Will Save”
You will not believe what it took to completely change my life. About three years ago, the HR Administrat...
A Think Like A Saver Attitude
By Melissa
Melissa has always been thrifty with a #ThinkLikeASaver attitude. This served her family well when her hu...
A Think Like A Saver Attitude
By Melissa
Melissa has always been thrifty with a #ThinkLikeASaver attitude. This served her family well when her husband lost his job in 2014. Using their savings, Melissa’s family stayed afloat while her husband found a new job.
Saving is a Family Affair
By Jeff
Saving is truly a family affair for Jeff’s household. During America Saves Week 2019, he pledged to save for retirement. But making a commitment and creating a plan to save isn’t a new concept for him.
Jump-Starting a Financial Makeover
By Nichelle Johnson
Nichelle Johnson, a single mom with two teenage children, knows what it’s like to stretch a dollar. When ...
A Think Like A Saver Attitude
By Melissa
Melissa has always been thrifty with a #ThinkLikeASaver attitude. This served her family well when her hu...
Saving With My Boys
By Kelly
Kelly has made saving a family effort. She started her boys saving early. “Probably 3,” Kelly told us, “w...
Put 20 Percent Away
By Melissa
“I am a single mother, and I make ends meet for me and my daughter, but I wanted to put money away for my...
Put 20 Percent Away
By Melissa
“I am a single mother, and I make ends meet for me and my daughter, but I wanted to put money away for my daughter for a college fund. So I started saving 20 percent of my paycheck every month to put it away in a savings account with a high Annual Percentage Yield (APY). By the time my daughter is 18, I will have saved nearly $90,000.”
Saving With My Boys
By Kelly
Kelly has made saving a family effort. She started her boys saving early. “Probably 3,” Kelly told us, “w...
Saving is a Family Affair
By Jeff
Saving is truly a family affair for Jeff’s household. During America Saves Week 2019, he pledged to save ...
Starting and Continuing a Personal Finance Journey
By Kiara Hardin
When Kiara Hardin, now a junior at Western Illinois University, became an intern with the Chicago Summer ...
Budget like Nohemi
By Nohemi
Nohemi found out about America Saves a few years ago as an undergraduate at the University of Illinois at...
From Overwhelmed to In Control
By Debi
In 2017 Debi felt overwhelmed. Her credit cards were maxed, and she wasn't exactly sure how to handle it. When asked how her credit issues started, her answer sounded like many Savers that we've spoken to: making too many impulse purchases.
Getting Out of Debt
By Tonya Shelton
In 2004, Tonya Shelton was facing financial ruin. Barely making more than minimum wage and having lost he...
Developing a Savings "Game Plan"
By Eunice Diaz
Eunice Diaz, a teacher in Colorado Springs, had been noticing a pattern. Despite the fact that she and he...
Inspired to Build Savings By Starting Small
By Sharon
With little-to-no money in the bank and living on a limited income with her adult daughter, Sharon wasn’t...
Taking Back Control Over Finances
By Nadine Bialo
After becoming a Virginia Saver and getting help from BankOn classes and coaching, Nadine Bialo took back...
Savings #ImSavingForSweepstakes
#ImSavingFor Winner Story
By Pedram R.
America Saves awarded one lucky saver, Pedram R. from California, $750 for sharing his #ImSavingFor story. Pedram said, “Saving is important to me because it proves I am not willing to buy unnecessary things to please others or to be perceived as successful.”
Saving is a Family Affair
By Jeff
Saving is truly a family affair for Jeff’s household. During America Saves Week 2019, he pledged to save for retirement. But making a commitment and creating a plan to save isn’t a new concept for him.
Getting Out of Debt
By Tonya Shelton
In 2004, Tonya Shelton was facing financial ruin. Barely making more than minimum wage and having lost her home to an unexpected family crisis, Shelton and her family were forced to live in a rundown hotel.
If we feature you in our newsletter, you get $50.
You May Also Be Interested In...
Take the America saves pledge
Make a pledge to yourself and create a simple savings plan that works. Complete the Pledge and America Saves will send you short email and text reminders, resources and tips to keep you on track towards your savings goal. Become part of an entire community of savers. Get started now!
creative ways to fund your savings
Those with a savings plan are twice as likely to save successfully. Taking the America Saves Pledge is a pledge to yourself to start a savings journey and America Saves is here to encourage you along the way. Take the first step toward creating a better financial future. Make a plan, set a goal, and pledge to yourself to start saving, today.
Congrats on completing the pledge!
Take the America Saves Pledge
Make a pledge to yourself and create a simple savings plan that works.
