What will you be doing day-to-day when retirement comes?
Do you remember when you were sixteen? If you were like me you couldn’t wait to be twenty-one…and it always seemed so far away. Now that we are working adults, retirement, like waiting for adulthood, may seem far off into the future, but looking back we may see it came all too fast. Thinking about retirement is not always on your radar and when it is, it may be limited to looking at your savings account balance every so often (or considering starting one).
So, how much is enough?
For each of us, that answer is different. A good place to start is with your imagination – visualize yourself in the future. Think about where you will live, how you will spend your time and any adventures you may wish to have. This will help you know how much money to save to live your best retirement. Should you save 50%, 70-80% or even 100% of your pre-retirement income? Don’t forget about additional assets and expenses such as Social Security, your other savings, medical expenses, long-term care and the list goes on.
Once you have envisioned how you will live in retirement, you will want to understand how much income you can provide yourself to support that vision. Using tools that can show you how your current savings will translate into income in the future will help you determine if you need to increase your savings or modify your vision so you can achieve your retirement goals. myOrangeMoney®, an online interactive educational experience, illustrates your estimated retirement income and any gaps in savings you may have (see the assumptions used in the estimate). To access myOrangeMoney, just log into your account at www.abaretirement.com. It’s the first thing that pops up.
Remember, if you identify a potential income gap there are a few simple steps you can take now to support your savings goals within every life stage such as:
You can help bridge any potential income gap with the savings strategies listed above. For clarity, talking with a financial professional, like what is offered under Professional Management2, 3, can help you understand what is right for you to hit your target and experience the retirement you’ve imagined.
2 Advisory Services provided by Voya Retirement Advisors, LLC (VRA). VRA is a member of the Voya Financial (Voya) family of companies. For more information, please read the Voya Retirement Advisors Disclosure Statement, Advisory Services Agreement and the ABA Retirement Funds Program’s (the Program’s) Fact Sheet. These documents may be viewed online by accessing the advisory services link(s) through the Program’s website at www.abaretirement.com after logging in. You may also request these from a VRA Investment Advisor Representative by calling the Program’s information line at 800.348.2272. Financial Engines Advisors L.L.C. (FEA/Financial Engines) acts as a sub advisor for VRA. FEA is a federally registered investment advisor and wholly-owned subsidiary of Edelman Financial Engines, LLC. Neither VRA nor FEA provides tax or legal advice. If you need tax advice, consult your accountant, or if you need legal advice, consult your lawyer. Future results are not guaranteed by VRA, FEA or any other party, and past performance is no guarantee of future results. Financial Engines® is a registered trademark of Edelman Financial Engines, LLC. All other marks are the exclusive property of their respective owners. FEA and Edelman Financial Engines, L.L.C. are not members of the Voya family of companies. ©2019 Edelman Financial Engines, LLC. Used with permission.
3 An individual must also have a minimum of $5 in their account to be enrolled in advice.