Staying on Track for Retirement in Your 50s
- Estimate how much you will spend during your retirement and whether this changes how much you need to save
- Determine which kind of guaranteed retirement income is right for you
When it comes to retirement planning, it’s hard to determine the exact amount you’ll need to save to last your entire retirement. Instead, start considering how much you’ll spend in retirement and if it will affect how much you’re saving now. With this in mind, we’ve created a quick checklist to make sure you stay on track for retirement during your 50s.
- Keep up the saving. It’s still vitally important to your goal of a happy retirement. Consider adjusting your portfolio, as well, if you need to make up any progress.
- Have a plan for retirement spending. That is, how much you wish to spend in retirement and what portion of your retirement expenses will be covered solely by your savings and Social Security. Don’t make a common mistake: retirement doesn’t always mean a drastic drop in expenses. Think more like 85% of your current expenses to be conservative.
- Lock in some guaranteed lifetime income by enrolling in the Personal Pension. As we mentioned before, pension plans have gone the way of the dinosaurs for the most part, but the Personal Pension is a great alternative that you contribute to in the years leading up to retirement. Like a traditional pension, the Personal Pension ensures a guaranteed stream of income that will last as long as your retirement does. You can use our Diagnostic Tool to determine your income needs in retirement based on some basic information.
- Diversify out of your company’s stock. You shouldn’t have any more invested in your company’s stock than you absolutely have to. That way, if the company goes under, you’re just out a job, not all your savings.