Stressed About Retirement Planning? Join the Club

Stressed About Retirement Planning? Join the Club

Are you satisfied with your savings plan to ensure a comfortable retirement? No? Join the club. A recent survey from Schwab Retirement Plan Services shows this fear is the most common major financial stressor.

40% of 401(k) participants responded that saving enough for a comfortable retirement was a significant source of financial stress. That share was higher than those:

  • Concerned about job security (24%)
  • Paying off credit card debt (21%)
  • Keeping up with monthly expenses (20%)

Of the Millennials surveyed, retirement concerns even topped stressing over paying off student loans (24%).

Because retirement plans are often subject to market volatility, they can be scarier than a finite amount of credit card or student debt. People need help calculating how much to save, determining the ideal age to retire, figuring out retirement expenses, and anticipating taxes after retirement. Here’s some actionable advice:

Grab your employer match
Simply by participating in your 401(k) you can reduce stress, but you might be leaving money on the table. Employees abandon billions of dollars in 401(k) funds each year by not contributing enough of their paycheck. Find out what you need to give for a full employer match.

Increase your contribution rate
According to the Schwab survey, a full third of employees have either decreased or made no changes to their 401(k) contribution rate in the past two years. Some plans have an auto escalation feature that periodically increases your rate by itself.

Keep an emergency rainy day savings account
This route will help prevent you from taking a loan or early withdrawal from your 401(k), potentially causing penalties.

Stay informed of annual contribution limits
In 2016, you’re allowed to deposit $18,000 into your 401(k), plus an additional $6,000 if you’re 50 or older. Up to $5,500 can be contributed to an IRA (traditional or Roth), plus another $1,000 if you’re 50 or older.

An Integrated Approach to Wealth Management
As the premier wealth management firm in the Washington D.C. area for the past 25 years, OptiFour Integrated Wealth Management provides clients with financial planning and implementation designed to achieve individual goals.

Please visit our homepage to learn more about financial planning, risk management, and wealth management services.