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2: Size Up Your Situation

Your Retirement Aspirations

Sign saying Retirement Ahead

Whether you think retirement is just around the corner or a long way off in the future, thinking about what you want to do with your retirement will give you guidance for your next steps.

When Will Your Retirement Happen?

I see something in the far distance (20 – 34 years old)
Perfect! This is the best time to start planning your retirement. The earlier you can start saving for your retirement, the more benefit you will reap from earnings on your savings.

I’m within sight of retirement (35 – 49 years old)
OK, take a good look at your retirement savings. If possible, you’ve saved somewhere up to three times your salary. Keep contributing to employer-sponsored retirement savings plans and continue (or increase) savings on your own as well (e.g., in a taxable account or tax-deferred IRA).

I’m closing in on retirement (50 or older, but not to full retirement age yet)
If you’ve been saving all along, you might have up to five times your salary. Don’t fret if not; you still have time to save and increase your earnings. Additionally, at age 50 or older, you can increase the amount you contribute to qualified accounts (401(k), 403(b) and IRA contributions) to help you catch up.

I’m already there (65 or older)
Now it’s time to make decisions about continued employment, your financial readiness for retirement, and managing your income in the years to come. If you’ve been planning all along, then you might be ready to retire. Check out SAM’s sister site My Retirement Paycheck for additional help and consider working with a financial professional.

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