Declare Independence from Retirement Worries

Freedom from financial stress in retirement is a goal many Americans hope to achieve. Just as the Founding Fathers drafted a blueprint for a new nation, you can create your own declaration of financial independence, setting the stage for a retirement as secure and prosperous as they envisioned for the country. Use these tips to help create a plan that paves the way for a future full of opportunity.

•    Review Your Social Security Statement

Create a mySocialSecurity account to view your current earnings history and your estimated Social Security benefits. This information, provided by the U.S. Social Security Administration, can help you more accurately calculate future benefits based on your age at the time you start claiming benefits. The statement also contains valuable information about Disability Benefits, Survivors Benefits, and Medicare eligibility.

Add this estimate to other retirement income sources that might include pension benefits or business income.

•    Estimate Your Retirement Living Expenses

Consider both daily living costs and discretionary expenses like travel or hobbies. It's crucial that you also consider costs that were covered by your employer, such as healthcare. These expenses are often greater than retirees expect.

For example, a recent Fidelity Retiree Heath Care Cost Estimate found that an average retired couple age 65 in 2023 may need approximately $315,000 saved (after taxes) for healthcare costs. A single person of the same age may need approximately $157,500.

Don’t forget to factor in annual inflation since the purchasing power of money declines. What $200 buys today will probably purchase less in the future due to rising prices.

•    Calculate Your Annual Income Needs

After exiting the workforce, you will likely have fewer expenses but not by much. You'll still have housing, health insurance, and other needs. The 4% rule can help estimate how much you need to save. For example, if you need $50,000 annually to cover expenses and enjoy your desired lifestyle, aim to save $1.25 million ($50,000 ÷ 0.04).

Remember, this is a guideline, not a guarantee. The 4% rule assumes a 30-year retirement and may not account for individual circumstances or market fluctuations.

SAFE’s How much do I need to fund my retirement? calculator  lets you estimate how much money you must have in your savings account to make recurring withdrawals of a specified amount.

Uncertainty is often at the root of financial worry. Take charge of your future finances by knowing where you stand and creating a realistic plan for your future. Consider seeking guidance from SAFE Investment Services*, where an in-house financial professional can help you create a personalized retirement plan.  Message an advisor today!

^{* Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. SAFE Federal Credit Union and SAFE Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using SAFE Investment Services and may also be employees of SAFE Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, SAFE Federal Credit Union or SAFE Investment Services. Securities and insurance offered through LPL or its affiliates are:}