Choose Your Retirement Lifestyle
A specific, concrete vision for your retirement can go a long way toward making it a reality. To start, here are four common retirement lifestyles and simple steps you can take to prepare.
A Life of Leisure
You want to enjoy free time as you pursue your passions. Look for online resources that can help you compare the cost of living in different locations, weighing factors such as taxes and housing versus the opportunities you’ll have to enjoy your favorite activities. Talk with your partner to make sure your retirement vision aligns with theirs.
Time With Family
You want to play a significant role in the lives of your kids, grandkids, or other relatives during your retirement years. Determine if you have room to grow your savings by contributing to your workplace retirement account, such as a 457(b), 403(b), or 401(a) plan. These workplace plans allow you to build your retirement savings through paycheck contributions and get tax advantages along the way.¹ Also, consider the advantages of opening or contributing to a 529 plan for a family member now.
Happy Traveler
You want the joy of travel to become a central part of your retirement. Try to increase your savings rate by 1% at the start of each year or on your birthday. You can view it as a gift to your future self, providing the savings you’ll need for the trips you’ve dreamed of. Also, consider renting out your home and using credible travel sites while you’re away for parts of the year. This can add extra income or help cover some of your housing expenses.
Second Act
You want to keep working even after you retire. Retirement income often comes from various sources, such as Social Security, a pension, and workplace retirement plan savings. Every retirement is different, but in general, many retirees may find that they need about 80% of their preretirement income to maintain their lifestyle in retirement. Knowing your sources of retirement income can help you determine when and how much to work after retirement.
As you think about sources of income for your golden years, consider everything you want them to help you accomplish — pursuing your passions, traveling, caring for your family, starting a business, or something else! A clear picture of what you want from retirement can help ensure you get to do just that.
As you think about sources of income for your golden years, consider everything you want them to help you accomplish — pursuing your passions, traveling, caring for your family, starting a business, or something else! A clear picture of what you want from retirement can help ensure you get to do just that.
¹MissionSquare does not provide tax advice. You are encouraged to consult a tax professional to review your specific tax situation.
²Our Financial Planning Services are complimentary for participants with balances of $100,000 or more. If a participant has less than $100,000, they can still receive a plan but could be charged a fee of up to $175. Our financial planning webinars, conducted by CFP® professionals, are available to all employees.