How to Plan for Retirement

2 Min. Read

It’s easy to put off thinking about retirement. Maybe it feels too far away, or maybe you’re focused on today’s financial challenges and don’t think you’re ready to plan for the future. But taking small steps now can make a big difference later.

The earlier you start planning, the more options you’ll have to fulfill your plans for retirement. And even if you’re playing catch-up, it’s never too late to build a path toward long-term financial security. Here are five practical steps to take charge of your financial future—no matter where you’re starting today.

1. Start with Your Vision

What does retirement look like for you? Do you want to travel, spend more time with family, or simply feel confident your bills are covered? Having a clear picture of your goals will help you determine how to structure your plan and prioritize your savings.

2. Estimate How Much You’ll Need

As a rule of thumb, financial planners often recommend replacing 70–80% of your pre-retirement income to maintain your standard of living. Consider:

• Housing and healthcare costs
• Everyday living expenses
• Fun extras like travel or hobbies

Learn more about saving to prepare for future goals: Invest in Yourself and Your Future

3. Start Saving Now, No Matter Where You Are

The earlier you start saving, the more time your money has to grow and accumulate interest. But even if your savings are slim today, it’s not too late to start building a nest egg.

• If you’re early in your career, start small and build as you go. Begin by contributing to an employer-sponsored retirement account, like a 401(k), especially if your employer offers a matching contribution.
• Are you at mid-career? Increase your 401(k) contributions or open an IRA to take advantage of additional tax-advantaged savings.
• If you’re 50 or older and nearing retirement, use catch-up contributions to boost your savings.

4. Grow and Protect Your Savings

As retirement approaches, your focus can shift from growth to preservation mode. Consider these steps to protect the progress you’ve made while leaving room for continued growth:

• Diversify your investments to balance risk and reward. A mix of stocks, bonds, and other assets can help protect your savings from market volatility.
• Adjust your asset allocation over time. As you advance on your journey, think about moving more of your portfolio into lower-risk investments that preserve capital.
• Plan for inflation. Even in retirement, your money needs to keep up with the cost of living. Consider how rising costs might impact your savings strategy.

5. Stay Flexible and Adjust

Retirement planning isn’t a one-and-done activity. Your goals, income, health, or family needs may change, so your plan should evolve, too.

• Review your savings and investment performance at least annually to track your progress.
• Update your budget and goals as your lifestyle or financial priorities shift.
• Revisit your retirement age estimate periodically. You may need to adjust your timeline based on new circumstances or opportunities.

Keeping your plan flexible will ensure you stay in control, no matter what life throws your way.

Learn how to jumpstart your savings and maintain momentum: The Road to Financial Independence

How Marine Credit Union Can Help

At Marine Credit Union, we’re here to help you take charge of your financial future with tools, resources, and guidance to make retirement planning simpler:

• Savings accounts and share certificates for near- and long-term financial security
• Free financial education and planning resources
• Personalized savings strategies

Your retirement dreams are worth planning for, and MCU is here to help you make them a reality. Reach out today and let’s take the next step together.