Planning for retirement has become increasingly difficult, as new reports indicate that couples retiring this year will need at least $220,000 alone to cover their health care expenses after they leave the workforce.
Today, studies have shown that Americans are feeling a little more confident about the economy and more realistic when it comes to planning for the future. The Henry Kaiser Family Foundation offers different tools to determine what you will need to save for a comfortable retirement. Many have become much more attentive to planning their retirement but have no idea what those numbers may mean.
The first step in saving is to get rid of any outstanding debt. If you plan on living in your home, try to pay off the mortgage. Second, start making small changes. Increase your 401(k) contributions, especially if you get a raise you can use this year. Split this raise with your retirement account. You won’t see a decrease in your take home pay according to US news. Contributing to a Roth IRA is another example of stable savings.
Other opportunities for long-term investments include whole-life insurance and annuities but we recommend 15 years of growth before supplementing this for income. If you decide to keep an older whole life policy in force, consider using policy dividends to pay premiums. For more ideas, talk to a financial adviser for any alternative investments that may be available to you.