Saving For Retirement: General Facts and Figures
- Pension – Will you receive a pension to supplement your retirement income?
- Social Security – It is important to note, at this time it is unclear what percentage of social security funds will be received by retirees beyond the year 2037, after which trust fund reserves will be empty. Retirees could receive a lower percentage than they do today. It is currently projected that beyond 2037, continuing taxes will be able to make up 76% of scheduled benefits unless other reforms are made.
- Length of Employment – How long do you plan to work? The estimates listed here are based on a retirement age of 67, which is when individuals are eligible for full social security benefits. However, many people retire earlier than this. The Center for Retirement Research lists an average age of retirement as 64 for men and 62 for women.
Retirement Investing 101: Gaining a Basic Understanding
More Risk = More Reward!
- Initial investment: $500
- Monthly contribution: $5
- Length of time that you save: 25 years
- Estimated interest rate: 5%
- Compounded annually, in 25 years you would have $4,556.80.
- Compounded monthly, in 25 years you would have $4,718.19.
Use this calculator to create your own scenarios of compounding interest.
Learning the Lingo
- Stocks – Owners of stock, which is divided into shares, share ownership in a corporation. There are two types of stocks. These are common stocks and preferred stocks, both of which have their own rules and features.
- Bonds – A bond is like a loan, where you are lending money to the government or a company. As the lender, you will eventually receive your money plus interest back on the maturity date.
- Mutual Funds – Mutual funds are a pool of money provided by investors. This is called a pooled portfolio. The money is then invested by a professional portfolio manager.
Individual Retirement Accounts
Learn more about the differences between Traditional IRAs and Roth IRAs in one of our latest articles!
Preparing for Retirement in Your 20s
- Increased earnings potential through longer savings and maximum compound interest
- More time for your assets to recover from volatile markets
- Possibility of a better retirement lifestyle
- Ability to retire earlier if desired
Take a Financial Course
Take Advantage of Employer Programs
Find a Reputable Financial Advisor
121FCU provides complimentary retirement and financial planning services for members!
Open an Account
Set Your Retirement Goals
Top tip for your 20s: Save 15% of your income for retirement.Mistakes to avoid: Putting off research, learning, and saving for later.
Preparing for Retirement in Your 30s
Increase Your Savings? ...or Pay off Debt?
Don’t Cash Out Your Account
Just Getting Started?
Top tip for your 30s: Increase your retirement savings 1% with each raise.Mistakes to avoid: Cashing out your investment account when switching jobs.
Preparing for Retirement in Your 40s
Assess Your Finances
Maintain Aggressive Investing
Diversify Your Investments
Just Getting Started?
Top tip for your 40s: Diversify your investments to increase your flexibility.Mistakes to avoid: Switching to conservative investments too early.
Understanding Your Finances
There are four key retirement metrics to consider:
You don’t have to perform all of these calculations yourself. Our partner brokerage service has this handy retirement savings calculator that can help you quickly figure out how much you should be saving and if there are any shortfalls to your current plan.
Important Takeaways When Saving for Retirement:
- Take advantage of compounding interest by getting started saving as early as possible.
- Put at least 15% of your income into your retirement savings, and possibly more based on age and other factors.
- Take advantage of employer matching programs.
- Increase your retirement savings by 1% with each raise.
- Don’t cash out your accounts.
- Maintain aggressive investing.
- It is never too late to get started saving for your retirement.
Let's Plan for a Bright Future, Together.
The Financial Retirement & Investment Services is offered through CUNA Brokerage Services Inc.*, a broker/dealer focused on serving credit union members. CUNA Brokerage Services Inc. is an affiliate of CUNA Mutual Group.
The program provides you with in-depth financial guidance and financial goal setting or simply a second opinion on the state of your finances. Ask our representative to help you create a personal financial plan that best fits your life so that you can retire sooner and with confidence.