Like most people, you’re busy and enjoying life and the thought of retirement seems like a far off dream. But, taking charge of your retirement funding has become even more important in today’s world. People are spending more time in retirement, contributions to company pension plans have decreased and the future of Social Security is uncertain.

List your needs and goals
Identifying your retirement income needs and goals can help you get started; you need to determine:

The number of years you are from retirement

Sources of retirement income you will have, including part-time work

Retirement expenses, including health insurance and long-term care insurance

Travel plans

Where you’ll live and if you plan to have more than one home

Current retirement assets

Evaluate your options
Take advantage of opportunities to defer or avoid federal income tax on earnings. These strategies can help you reach your retirement income goals:

Employer-sponsored plans — your employer may offer a retirement plan that allows you to contribute a portion of your income, usually on a pre-tax basis, which lowers your taxable income. Funds grow tax-deferred and your employer may also match a portion of your contributions.

Traditional IRA — if you are employed or self-employed, you and your spouse may contribute to a Traditional IRA each year up to age 70. You may deduct all or part of your IRA contribution on your federal income taxes, and all earnings accumulate tax-deferred.

— provides no income tax deduction for contributions, but earnings grow tax-deferred and may be withdrawn tax-free if the plan has been established for at least five years and you are age 59½ or older.

Non-qualified funds — with certain options, money can be accumulated outside of a formal retirement plan for your future needs.

Self-employed plans — if you are self-employed, a variety of retirement plans may reduce your taxable income, offer tax deferral on earnings and usually allow tax-free transfers between investment options.

Take action to build retirement income
When investing for retirement income, you may choose from stocks, bonds, money markets, CDs, mutual funds or annuities. The type of investment portfolio depends on your years away from retirement, financial objectives and how much risk you are willing to take to achieve your goals. Even small, regular savings can add up over time ― the earlier you start, the longer you can take advantage of compound interest and tax-deferred growth on your money.

Farm Bureau can help maximize your retirement income strategy so you can enjoy life now…and later. Find an agent today.