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Retirement Readiness

A Practical Guide to Retirement Planning

Retirement will likely be one of the biggest expenses in your life. Therefore, it’s important to develop a plan and evaluate your goals at least once a year. Working with a financial professional can help.

Getting Started (In your 20s and early 30s)
Creating a retirement vision is an important part of being retirement ready. And getting started early is one of the best decisions you can make to maximize your retirement nest egg. The earlier you start, the longer you have to realize investment returns. It’s also important to start an emergency fund in the event of a financial emergency. Experts suggest that you have enough money set aside to cover three to six months of expenses.

The Magic of Compounding
You have an ally, time is on your side. The earlier you start investing, the longer your money has to grow. Check out this example:*

Starting at age 20
$2,000 contribution (per year for 40 years) 8% annual interest = $560,000 savings at age 60

Starting at age 30
$2,000 contribution (per year for 30 years) 8% annual interest = $245,000 savings at age 60

The individual who started saving at age 20 only contributed $20,000 more than the individual who started contributing at age 30, yet they had $315,000 in retirement savings at age 60.

Checking In (Age 30s to 40s)

So you’ve had your retirement vision in place for awhile. Don’t forget to re-evaluate your vision regularly to ensure your investment strategy aligns with your goals. Here are a few ways to do that:

  • Get a portfolio check-up – Review your retirement accounts with your financial advisor at least once a year; plan your check-up around your birthday or an anniversary so it’s easy to remember
  • Ramp up your savings – Make more and save more; consider saving a portion of salary increases, bonus or other unexpected cash flow to boost your balance
  • Consolidate your assets – Consider rolling assets from former employer plans into your current retirement plan

Hitting the Home Stretch (Age 50s to 60s)

You’re nearing retirement and now’s the time to identify your retirement income needs. Set a budget to map out how much money you need for living expenses and how much you’d like to keep invested so your balance can continue to grow. Consider these steps to create your plan:

  • Work with a financial professional to evaluate market volatility, inflation, and your risk tolerance
  • Make the most of your contributions – The IRS establishes maximum contribution limits annually for 401(k) and other retirement plans. And for those over age 50 there’s an additional “catch up” contribution that can be made. To see current contribution limits, visit
  • Remember Social Security – Determine when to begin accessing Social Security to supplement your personal retirement savings

Still can’t decide when you’ll be ready to retire? Choose from these easy options for help:

  1. Log on to your account at
  2. Call a Mutual of Omaha Service Representative at 888-917-7191
  3. Contact your company’s HR/Benefits Administrator