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Retirement Planning and Its Importance for a Secure Future

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Retirement planning is a strategic approach to saving and investing in the future. Adopting a plan will help you stay on track, ensure that you meet your financial goals, and turn preparing for the future into a stress-free experience.

At Power Financial Credit Union, we encourage our members to be proactive about retirement planning regardless of age or financial situation. Below we discuss why Florida retirement planning matters, the options to consider, and how we can help.

What Does Florida Retirement Planning Entail?

Your retirement strategy should include a comprehensive plan that considers your current financial situation, your long-term goals, and your family's financial well-being.

Setting Financial Goals

You should start by setting a target date for retiring and thinking about the kind of lifestyle you want in retirement. Goals can include paying off your home before retiring, moving closer to your grandchildren, traveling, or simply having the freedom to explore new activities.

Assessing Financial Resources and Retirement Income Needs

As a rule of thumb, living on 70% of your pre-retirement income is a realistic goal, but this amount can vary based on your circumstances.

Consider different sources of income you can expect in retirement, including Social Security, pension, and retirement accounts.

Creating a Retirement Savings Strategy

You can use your retirement income needs as a starting point for establishing monthly or annual retirement contribution goals. Experts recommend saving 15% of your income, but you'll likely have to adjust this percentage based on your age and retirement goals.

It's also important to find a balance between short- and long-term goals. For instance, paying off debt or saving for a home purchase can help you achieve additional retirement goals and might take priority over saving.

Considering Healthcare and Long-Term Care Needs

Healthcare costs keep rising and could represent a significant expense in retirement. Even though you'll qualify for Medicare at age 65, you should budget for supplementing this coverage with a private plan. Another common strategy is to max out a Health Savings Account before retiring. You'll lose eligibility for making HSA contributions at 65 but can spend funds in an existing HSA.

Long-term care insurance is another product to consider since long-term care expenses can easily reach $10,000 a month as we age. A couple purchasing a policy at 55 for $5,000 a year can receive as much as $800,000 in coverage at 85.

Develop an Estate Plan and Legacy Goals

It's never too early to start thinking about estate planning. You can consider asset distribution, estate taxes, charitable donations, purchasing life insurance, and more. Your legacy goals can inform your retirement planning decisions, such as choosing assets you can pass on.

Why Does Retirement Planning Matter?

Retirement planning matters for several reasons:
  1. Having a strategic plan will result in financial freedom down the road. Being comfortable in retirement allows you to live these years to their fullest and enjoy an increased quality of life.
  2. If you're feeling anxious about the future, making a plan will help. A sound retirement strategy will also reduce stress for your adult children.
  3. Saving for retirement early opens the door to a wide range of possibilities. Your vision of retirement doesn't have to be set in stone. Your goals will likely change over the years, but saving early will give you the flexibility to consider different options.
Explore Your Florida Retirement Planning Options With PFCU

Enjoying a financially secure life in retirement takes some planning. Regardless of your age or financial situation, the best time to consider retirement planning is now.

If you're in Florida, Power Financial Credit Union can help you proactively plan for the future. One of our experts can review your retirement goals, help you develop a saving strategy, and recommend the best retirement products to build the future you envision for yourself and your family.

Read more about our retirement accounts or contact us to discuss our retirement planning services.