Planning for Retirement

While saving for retirement may feel like a chore to worry about later, having a plan to save early can help ensure you're able to retire when you're ready. 

We want to make sure you're prepared and have the resources you need to make the most of your retirement. Check out the tips below to learn the basics of retirement planning, then stop by your local OHecu branch and talk to one of our experts about the services we offer to make your money work for you.

How Much to Save
While there's no magic number to hit when saving for retirement, you do want to make sure you have enough money to cover your expenses and any unexpected costs that may arise. A general rule of thumb is to have saved at least 8-10 times your annual income by the time you're ready to retire.

To reach this goal, many financial experts recommend saving between 15-20% of your gross income and allocating that money towards retirement. Electing to have a percentage of your paycheck deposited into a reirement account can help make sure you're saving every month without being tempted to spend that "extra" money.

Tools to Help
There are several financial tools available to help you save enough for a comfortable retirement. Many employers will match 401(k) contributions up to a certain amount, helping you reach your retirement goals ealier than if you were relying on individual contributions alone.

There are also several investment accounts, such as a Traditional or a Roth IRA, that can help your money grow faster than it might in a regular savings account. Often, individuals invest more aggressively when they're younger and then gradually shift to a more conservative investment strategy as they approach retirement age.  

Social Security
Social Security should be part of your retirement strategy, but you shouldn't count on that on its own to cover the entire cost of your retirement. According to the Social Security Administration, these payments represent only 40% of the average American's retirement income. Be sure to have a retirement savings plan outside of your anticipated Social Security payments.

Expect the Unexpected
Setting aside extra funds to cover costs like home projects, healthcare, and long-term care can help ensure you're able to live comfortably during retirement, even if an emergency occurs. An emergency fund with 6-12 months' worth of expenses will help you rest easy, even in the face of unexpected expenses.

Planning for retirement can feel overwhelming. But we're here to help. Stop by your local branch to learn how we can help you reach your retirement savings goals.