Are you on track to retire comfortably?

From: REAP, LLC. | Retirement & Estate Advisors & Professionals

Americans, on average, are falling behind when it comes to saving for retirement. In fact, a 2015 study found that about 75 percent of people over the age of 40 are behind with their retirement savings. Making your retirement accounts a priority can help reduce the likelihood of having to work longer into your golden years. Take control of your financial future by considering your retirement options today.

When will you retire?
The government has increased the normal retirement age over time, but there are advantages to working past that age. Waiting to claim your social security can increase your benefits and allow you to continue earning income without putting your benefits in jeopardy of being taxed.

Delaying retirement can also give the investments in your retirement accounts more time to capture potential gains. But keep in mind that the IRS does enforce a required minimum distribution (RMD) for most retirement accounts. This means that individuals must withdraw at least the specified minimum beginning no later than age 70.5 or face a 50 percent penalty on the amount not withdrawn.

How much retirement savings will you need?
How much you need to save today to build a comfortable nest egg depends largely on one important variable: the cost of your current lifestyle. If you plan to move to a new city or even abroad after retirement, your cost of living is likely to change. And as you get older, your health care expenses may increase, so you’ll want to factor that into your retirement planning as well.

What you can do now.
Setting or adjusting your financial goals for retirement and making them a priority will keep you on track to retire comfortably. You can also make behavioral changes now to rein in any unnecessary spending. Moving toward a lifestyle that’s more consistent and predictable can help make your retirement projections more stable. So will contacting a financial professional who can provide tailored suggestions for your situation.

• Tweet