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Retirement Readiness

It is important to understand how to save for retirement at different stages of your life. These materials give guidance on what to focus on along your journey towards retirement.

Are you Retirement Ready?

Will you have enough money to sustain your standard of living during retirement? Retirement will likely be one of the biggest expenses in your life. It’s important to develop a financial plan and evaluate your savings goals at least once a year. Based on your age, you and a financial professional can decide what you can do to improve your retirement plan.

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 probably one of the best decisions you can make to tackle your goals and maximize your retirement savings. The earlier you start saving, the longer you have to realize compounded investment returns.

It’s also important to start an emergency fund to avoid raiding your retirement savings in the event of a financial emergency. Experts suggest that you have enough money set aside to cover three to six months of expenses.

57 percent* of millennials surveyed lack confidence that they will be able to retire when they want to.
A report on the Lived Economic Lives of Millenials, June 2017 *Weighted average of figure 19

The Magic of Compounding

You have an ally, time is on your side. The earlier you start saving, 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 savings strategy aligns with your goals. Here’s a few ways to do that:

  • Get a portfolio check-up – Review your retirement accounts with your financial advisor at least once a year to ensure your portfolio is positioned to help meet your retirement goals; 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 and increase your contribution rate
  • Consolidate your assets – Consider rolling assets from former employer plans into your current retirement plan

52 percent of working-age households are at risk of being unable to maintain their standard of living in retirement.
The Center for Retirement Research, February 2017

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

You’re nearing retirement and now’s the time to identify your regular retirement 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 savings 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 – In 2021, the IRS maximum contribution for a 401(k) is $19,500, but people over age 50 can add a catch-up contribution of $6,500
  • Remember Social Security – Determine when to begin accessing Social Security to supplement your personal

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
  4. Contact a Financial Professional



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