Are Your Retirement Savings on Track?

As you near retirement, it’s important to see whether you’re still on track to reach your savings goal — and what you can do to improve your situation. A few quick steps will help you take stock of your retirement savings:

Step 1: Estimate your monthly living expenses in retirement. You may have run ballpark figures in the past, but you can use more specific numbers now. Add up your regular expenses plus any new costs you’ll have after you retire, such as health insurance premiums if you have to buy a policy on your own. If travel is one of your goals, don’t forget to add in related costs.

Step 2: Find out how much money you’ll receive in income. Ask current and former employers about your monthly pension benefits. Also review your annual Social Security statement, use the Social Security Administration’s online calculators (www.socialsecurity.gov) or call 800-772-1213 to find out how much you’ll receive each month based on several retirement date options, if you qualify.

Step 3: Calculate how much money you’ll need to withdraw from your own savings to fill in the gaps. ICMA-RC’s Advanced Retirement Planning Guide can walk you through each of the steps and help you calculate your retirement income, expenses and savings needs. The online guide is available in the Planning & Tools section of our Web site.

What if you fall short? If your projected balance isn’t enough to pay your bills—and cover other expenses and emergencies — you still have time to consider several options. You can lower your expenses or increase your current contributions. Or you could work a few extra years, whether it’s full-time or part-time. If you take a dream job or start your own consulting business, even a small salary can help cover your bills for a few years while your savings continue to grow. You may also qualify for valuable benefits, such as health insurance.

Need extra help? Contact your Retirement Plans Specialist for a personalized projection of your retirement needs and help with plotting your strategy.

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