Page 4 - Gallagher Benefit Services - Financial Newsletter

Retirement
Planning and Considerations
The earlier you start to save and the more you save now the better o you will
be later because you can bene t from compounding interest. Compounding is what happens when the money you save grows and the combination of your contributions and the earnings from them are reinvested. This allows your account to grow further. If your savings continue to grow over time, compounding interest will have a substantial positive impact on your total account balance— giving you more nancial exibility and freedom during retirement.
Regardless of where you are on your journey towards retirement, it is important to take a close look at your goals periodically, whether or not you are on track to meeting them, and what you can do right now to get or stay on the right path. If you haven’t already, ask yourself the following questions....
1 - What lifestyle do you want to live in retirement?
Where will you live? What will you do? How much will your retirement lifestyle cost? Create an estimated retirement budget. For help visit https://personal. vanguard.com/us/insights/retirement/tool/ retirement-expense-worksheet
2 - Where will your retirement income come from?
Review the most recent statements from all of your expected sources of retirement income including social security, pension(s), and company sponsored retirement savings plans such as the ABC Company 401(k) Plan. Be sure you are taking into account all sources including previous employer plans.
3 - How much do you need to fund your retirement lifestyle?
After estimating your monthly expenses in retirement, you will learn how much monthly income you need to cover them. There are a lot of great online calculators available to help you estimate the amount you need to accumulate to convert into monthly income so you can cover your expenses throughout your retirement.
Check out the Retirement Calculator section of bankrate.com (www.bankrate.com/calculators/ retirement/retirement-plan-income-calculator. aspx) for help in determining if you are saving enough to be on track to meet your goals or if you need to make adjustments.
4
Wellbeing — Make it your own!