Why Should I Plan for Retirement?

A sound retirement is like a 3-legged stool. You can’t depend on just your pension, any more than you can rely solely on savings and investments or just your social security in retirement. To be balanced, you need all three.

A typical person retiring at age 55 today should plan to live at least 30 more years. To retain the same purchasing power through 30 or more years of retirement, your income in retirement must keep pace with inflation and probable higher medical expenses. Odds are, you’ll be depending on savings to supplement any gaps. That’s why it’s important to:

Understand your pension plan.
Know when you’ll be eligible for your pension, how it will be calculated, and the insurance benefits in retirement. After exploring this website, you’ll find ways to boost your pension amount.

Develop a retirement plan.
Talk to a financial planner or use an online retirement calculator that performs income projections, helps you set goals, and tells you how much you should save in order to meet your retirement goals. Start saving early and regularly. One great way is your employer-sponsored tax sheltered annuity (TSA) because of the tax advantages and easy payroll deductions. 

Follow your plan.
Review your plan at least once a year to see if you’re on target. Gather your most recent social security statement and Member Statement and update your pension calculation. Add up your retirement savings and deferred compensation funds, and adjust your savings as needed to meet your goals.