When to Revamp Retirement Savings

Some signs that your retirement savings strategy needs help

If you’re on your way to retirement and have concerns about your retirement savings, the time to fix things is now, not later. Here are some ways in which your savings strategy for your golden years could be off the rails — and how to correct it so that your retirement train arrives intact.

Your Age and Savings Are Off

There’s no shortage of sites and calculators that show you how much you should have saved for retirement at different ages. As long as you’re hitting close to these marks (by 30 you should have the equivalent of your annual salary saved; by 40 three times your salary saved; by 45 four times your salary saved, etc), you’re likely going to be okay. However, if you find that you’re not anywhere near the estimates, you need to buckle down and increase your savings rate.

Your Investments Are Scattered

A sound investment strategy includes a healthy mix of stocks and bonds that generate returns but aren’t so aggressive that you freak out when the market inevitably goes south. If you aren’t sure what your mix looks like, you’re in trouble. Talk to an expert. Once you settle on an investment strategy, stick to it by keeping the big picture in mind.

You Think You’ll Kick The Bucket Soon

You don’t want to underestimate the number of years you’ll be spending in retirement. If you do, you’ll come up short with your retirement savings. While it’s impossible to know for sure how long you’ll live, this longevity calculator from Blueprint Income can provide an educated guess. As Money notes, you simply enter your personal info like average health rating and sex and the tool will calculate how long you’re likely going to live. Make sure your retirement savings will cover you through that number.

Chris O'Shea

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