What to Know When Retiring in an Uncertain Market

Are you ready to leave the workforce but anxious about the economy? You have a lot to think about when you’re deciding to transition from work life to retirement, and uncertainty about your retirement investments can add to your stress. 

Many people are worried about the rising expenses they might face in retirement, possible market downturns, when to start collecting Social Security and their job security in the months and years leading up to retirement. These are tips to help you retire with confidence. 

It’s important to make the best decisions about your retirement. Talk to Farm Bureau to learn more about retirement planning, including prioritizing which accounts you draw from and when.

Know Where You Stand

If you’re not tracking your income, spending and net worth, you probably don’t really know what your financial picture will look like in retirement, and that uncertainty can add to your stress. It’s smart to track your expenses and your progress toward savings goals regularly and see what your net worth is at least once a year.

When you know what your income and expenses are, you can use a retirement calculator to get a better idea of what income you’ll need after you retire. That can help you decide when you are financially ready to retire.

Improve Your Financial Picture

As you head toward retirement, try to take steps that can help put you in a better financial position: 

• It’s smart to reduce your debt, especially any high-interest debt like credit card debt.
• Contribute to your retirement plan. At minimum, aim to add the amount you need to get any employer match. Ideally, contribute as much as possible. If you’re age 50 or older, you can make catch-up contributions.
• Invest in a health savings account (HSA) if you’re enrolled in a high-deductible health plan. You can put money into an HSA tax-free and withdraw the money tax-free as long as you use it for qualified health expenses.

Consider Working During Retirement

Retirement isn’t the all-or-nothing step it used to be. Many people these days continue working while they’re retired. That could look like a scaled-down version of a previous job, part-time work in a related or different field or seasonal work that leaves a lot of time free for other activities.

When your retirement planning includes some work, it may lower the amount you need to take from savings and can supplement your Social Security. Plus, working can help you stay mentally active, and can give you a way to transition more gradually away from work and toward the other things you plan to do in retirement.

Just be sure you understand how your income can impact your Social Security benefits.

Get Financial Advice

From answering questions like “How much money do I need to retire?” to helping you create a withdrawal plan that protects your future retirement income, a Farm Bureau financial advisor can help you make a plan for your retirement.