Fall and financial well-being go together like crisp autumn air and apple pie.
September is Life Insurance Awareness Month, October is National Financial Planning Month, and November brings National Long-Term Care Awareness Month. They are perfect reminders to review your financial plans and make sure you’re on track.
To help you navigate it all, we’re launching a new financial literacy series that will guide you through preparing for retirement. In this first post, let’s look at four introductory steps to set yourself up for your golden years.
Step 1: Set clear retirement goals
The average American retires at age 62,. But in Maryland, most folks work until closer to 65.
Whether you plan to slow down early or keep working, it’s important to picture what you want life to look like.
If you’re not sure yet, that’s okay. Ask yourself these questions to start creating a “retirement vision.”
- What’s my target retirement age?
- What lifestyle do I want in my golden years?
- What health care needs should I prepare for now and in the future?
Once you know your goals, you can start planning for your future.
Step 2: Consider when to claim Social Security benefits
For most Marylanders, Social Security is a key piece of retirement income. You can start collecting a small portion of your benefits at age 62. However, waiting until your retirement age or later can significantly boost your monthly checks.
Changes to Social Security rules may be coming. It pays to stay informed. Don’t worry, we’ll cover those in an upcoming post so you can make the most informed decision.
Step 3: Give your savings a yearly check-up
Think of it like an annual physical for your finances. Savings goals are personal. Reviewing them once a year helps you adjust for changes in income, expenses, or goals.
You don’t have to do this alone! SECU offers free 30-minute financial consultations for members. Schedule one today.
Tip: How to save more for retirement
There are a few ways to make your hard-earned savings work harder for you. Consider these options to boost your nest egg.
- Certificates of deposit (CDs): Ideal for people who aren’t planning to retire soon. Your savings earn higher interest rates over a longer set term..
- Money market accounts: Offers flexibility if you’re nearing retirement. Earns more than a basic savings account, but keep funds accessible.
- Share savings: Best for everyday savings and emergency funds, with unlimited deposits and withdrawals, easy access, and always earning interest.
Step 4: Plan for health care and insurance costs
Medical expenses can be one of the biggest surprises in retirement. Planning ahead helps prevent unexpected financial costs later.
Consider each of the below while creating your retirement plan.
- Medicare and Medicaid: Know what’s covered and where you might need supplemental coverage.
- Life insurance and long-term care: Both are valuable and can help protect loved ones and cover future care costs.
- Saving for health costs: Make this a specific part of your savings plan. You can use a money market account to set aside funds for premiums and unexpected bills.
We can help you confidently plan for retirement
Retirement planning is a series of small, strategic decisions. It’s never too early or too late to start. Whether you’re just starting or fine-tuning, we’re here to help.
Our financial experts can help you:
- Turn your “retirement vision” answers into a practical savings plan.
- Run a Social Security timing report so you can see the difference between claiming benefits early and waiting.
- Pick the best-fit savings account to steadily grow your retirement fund.
- Estimate annual health care costs so you can plan accordingly.
Schedule your free SECU financial wellness checkup or book a free counseling session with our trusted partner, GreenPath, for more complex financial guidance.
