According to researchers at University of Scranton, 45 percent of Americans make New Year’s resolutions. The most common resolutions are to lose weight, get organized, and save more money. Sadly, only 8 percent of resolutions are kept.1
If you’re considering a resolution for 2017, you may want to consider one that will positively impact your life today and in the future. Think about making 2017 the year you reassess your retirement planning and make improvements where needed.
Everyone can benefit from a periodic check-up on their retirement plans. However, some people may need a retirement review more than others. Below are a few signs that a review is in order. If any of these sound familiar, you may want to take a fresh look at your retirement planning efforts sooner rather than later.
You’re behind on your savings.
According to Gallup’s most recent survey about America’s top financial concerns, retirement topped the list. Nearly 64 percent of respondents said they were worried about having enough money for retirement. In fact, retirement has been the number one worry every year that Gallup has done the study.2
It’s a valid concern. Another recent study found that half of American households have no retirement savings. The median retirement savings balance is only $5,000. Among those who are actively saving, the median balance is $60,000.3
If you have the feeling that you’re behind on your savings efforts, now may be the time to get back on track. Develop a budget to help you cut back on spending and maximize your retirement savings. Increase your contributions to your employer 401(k) plan. Consider scaling back on your planned lifestyle so you can make retirement more affordable. There are many steps you can take to get back on track, but you may need to act quickly.
Your marital status has changed.
Getting married or divorced is one of the biggest changes a person can experience. It impacts you not only on a personal level, but also from a financial perspective. If you recently got married, you may now have an additional household income and significantly more retirement assets. However, you might also have more dependents, higher expenses, and an increased level of debt.
If you recently divorced, you may now face sizable support payments or you may have split your retirement assets in the settlement. Conversely, you may have been the lower earning spouse in the marriage and may now face the task of building your own financial foundation.
Whether you got married or divorced, the sooner you can develop a strategy, the sooner you can take action to get your financial house in order. Review your retirement planning this year so you can take back control of your financial future.
Your income increased.
Did you get a big raise or promotion in 2016? Has your income increased significantly? An increase in income can provide a big boost to your retirement planning, but only if you use that raise to bolster your finances. Far too often, people increase their spending to match their new income level. The result is that the raise has little or no impact on their retirement savings efforts.
If your income has increased, take some time to develop a budget. You can use the budget to limit your spending and ensure that some of your increased cash flow finds its way into your savings accounts.
Ready to review your retirement planning? Let’s talk about it. Contact us today at Sprouse Financial Group. We can help you analyze your needs and develop a strategy. Let’s connect soon.
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