While saving for retirement can often feel like a constantly moving target or a chore to worry about later, putting a plan in place to save for retirement early and sticking to it can help ensure you can retire when you want to and enjoy your time with family, friends, and loved ones. 

At Midwest Community Federal Credit Union, we want to make sure you have a plan in place and the resources you need to make the most of your retirement. Read more below to learn basic tips and tricks to plan for retirement, then stop by a local branch to talk to one of our experts about the services we can offer to make your money work for you.

How much to save

While there’s no “magic number” to hit when saving for retirement, you do want to make sure you have enough money to cover your expenses and unexpected costs that might arise. A general rule of thumb is to have saved at least 8-10 times your annual income by the time you’re ready to retire.

To reach this goal, many financial experts recommend saving between 15-20% of your gross income and putting that money toward retirement. Electing to have a percentage of your paycheck deposited into a retirement account can help make sure you’re saving every month without being tempted to spend that “extra” money.

Tools to help

There are several financial tools available to help you save enough to retire comfortably. Many employers will match 401 (k) contributions up to a certain amount, helping you reach your retirement goals earlier than if you were relying on individual contributions.

There are also several investment accounts, such as a Roth IRA or a Traditional IRA, that can help your money grow faster than it might in a traditional savings account. Often, individuals invest more aggressively when they’re younger and then gradually shift to a more conservative investment strategy as they approach retirement.

Social Security

Social Security should be part of your retirement strategy, but you shouldn’t count on Social Security payments to cover the entire cost of your retirement. According to the Social Security Administration, Social Security payments represent only 40 percent of the average American’s retirement income. Be sure to have a plan to save for retirement outside of your expected Social Security payments.

Expect the Unexpected

Putting away extra funds for costs like healthcare, home projects, and long-term care can ensure you’re able to live comfortably in retirement even if an emergency occurs. An emergency fund with 6-12 months’ worth of expenses will help you rest easy in retirement, even in the face of unexpected costs.

Planning for retirement can feel overwhelming. At Midwest Community, we’re here to help. Stop by a local branch today to learn more about how we can help you reach your retirement goals.