• 4-Minute Article

4 Ways to Feel More Prepared for Retirement

Retirement is a big financial decision. Here’s how you can help ensure you’ll be ready.

How to Prepare for Retirement
Questions this article can help you answer:
  • How can I better prepare for retirement?
  • Which income sources should I use to pay for expenses in retirement?
  • What is the role of a financial professional in retirement preparation?

Once you retire, you want to be able to enjoy life without worrying about whether you have saved enough. However, if you don’t feel as confident as you’d like about your retirement preparations, you’re not alone. While everyone’s financial situation is different, only about a third of all consumers feel very confident about having saved enough money to live comfortably in retirement.

35% of people feel very confident in having enough money for a comfortable retirement

The good news is, there are steps you can take to boost your retirement confidence and help get – and keep – your finances in shape.

Here are four ways to prepare for retirement:

01Decide what you need to live on eachmonth and what you can afford

Think about non-essentials like entertainment, restaurants, and clothes. Track your expenses for a month to get a better idea of where your own money is spent.

What will you spend in retirement?

It’s estimated that the average couple will need $285,000 in today’s dollars to cover them in retirement.

02Know where your income comes from. In other words, how will you pay for these expenses?

Sources of retirement income relied on by retirees

Quick Tip:
Try the Annuity Income Calculator to see if there’s a gap between expenses and your projected income sources.

03Try to cover essential expenses with guaranteed income if you can

Guaranteed income includes social security, pension and annuities

Income that's not guaranteed include investments, savings, IRAs and 401(k)s

Waiting until age 70 to collect Social Security will increase benefits 8% more a year dependong on your birth year.

04Protect the income you do have by working with experts

Financial Professional – can help you maximize Social Security benefits and minimize healthcare expenses.

returns can be 3 percent higher with a quality financial profressional

Consider seeking out a financial professional with retirement expertise in areas such as:

  • Income planning and protection
  • Investment selection and diversification
  • Withdrawal strategies
  • Planning for long-term care

Tax expert – can help you manage taxes on the money you take out of your retirement accounts. A tax expert like an accountant can give you guidance on how different accounts are taxed.

A tax expert like an accountant can give you guidance on how different accounts are taxed.

Attorney – can help make sure your family has what they need in your absence. Learn more about how to get started with estate planning here.