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What to Prioritize When Saving for Retirement

saving for retirement

Whether you have places you want to go, people you want to see, or things that you’ve always wanted to buy, there are likely many milestones you’ll want to reach during your retirement years.

That being said, preparing for this exciting chapter in your life is important, and creating a list of priorities for saving for retirement is vital. You might have significant dreams and goals set aside for the future, but with current financial necessities like groceries, rent, and other costs, it can be hard to develop and prioritize goals when you start saving for retirement.

At Franklin Park® Senior Living, we’re here to help you find the right resources that you need to achieve your retirement goals. Our luxury senior living communities in Texas are here to help you with this process.

Set Aside Emergency Funds

You never know what life might throw at you next, whether it’s a medical emergency or simply money to help you buy groceries and other necessities. The best standard for this emergency fund is to save enough money to cover three to six months of your standard living expenses. 

For many people, three months of expenses is an unrealistic amount of money to gather quickly. That’s why many financial experts and institutions recommend saving up to $500 as a starting point. Shoot for this goal amount to help with any unexpected large bills that might come along with emergencies, like a medical bill or a car repair. After you reach this goal, set a new one until an amount equating to three to six months of your expenses is reached.

Contribute to Your 401(k)

If you have an employer-sponsored retirement plan, like a 401(k), where your company matches any portion of your contributions, it’s essential to sign up for this as soon as possible.

The most common match from an employer is 50% of your contributions or up to 6% of your yearly salary. Be sure to contribute enough money to receive the maximum matching funds that your company will provide.

If you don’t have a 401(k), consider investing in an IRA or an Individual Retirement Account, which is a tax-advantaged account that helps you immensely when saving for retirement. Anyone earning an income is eligible to open an IRA, including people who already have a 401(k) through their employer. These accounts can be opened through a bank, a broker, or even an online financial institution or advisor.

Keep in mind that your account balance grows depending on the amount of money that you invest into an IRA over time. 

Get Ready for Your Ideal Future!

Once you’ve started prioritizing the main savings that you’ll be relying on during your retirement years, it’s time to start thinking about the goals that you’d like to accomplish after you retire.

Do you want to travel around the world? Do you want to visit long-distance family and friends? In that case, start prioritizing the amount of money it will take to go on these trips. Once you’ve calculated the potential travel expenses, start implementing that into your saving habits. 

It’s also important to calculate based on when you’ll need the money for these special opportunities and adventures. Start with accurate cost estimates by researching the price of the things that you want to bring into your retirement lifestyle, then divide that cost by the number of weeks, months, or even years between now and your retirement deadline. If the final number is a bit shocking, try to adjust your goals realistically by substituting less costly alternatives, then alter the time frame accordingly if needed. 

When saving for retirement, be sure to speak to a financial advisor or professional to help you find solutions that work best for your situation.

At Franklin Park® Senior Living, our communities are ready to provide you with the ultimate retirement experience. Providing resort-style living and plenty of high-end amenities, our luxury senior living communities in Texas ensure your retirement is elevated and ideal for your lifestyle.

Contact a member of our team today or visit our website to learn more about all that we have to offer.