Refocusing on Your Retirement Plan During COVID-19
No one could have predicted that a worldwide pandemic would occur in 2020. So, if you’re feeling behind on planning and saving for retirement, you aren’t alone. However, the good news is that it is never too late to refocus on your retirement and create a solid plan.
Below are a few steps you can take to get your retirement back on track:
- Eliminate debt. Try to pay off any outstanding debts, including paying off your mortgage, credit card bills, and other loans.
- Save as much as possible. Try to cut down on any unnecessary spending and expenses. Your saving efforts will be worth it during your retirement years. For more tips on saving, read our Money Management Tips.
- Extend your date of retirement to give yourself a few more years to save.
- Make sure you are participating in a 401(k) program. Many companies offer a 401(k) program as a benefit of employment. A 401(k) program is beneficial, as it offers a variety of tax benefits. Please consult a tax advisor for additional information.
- Invest in an IRA. If you would like to contribute more to your retirement savings or your employer does not offer a 401(k) program, you might consider opening an IRA.
- Contribute the maximum to your 401(k). Making the maximum contribution now will provide significant benefits to your retirement. In addition, many companies will match a percentage of your contribution, so don’t miss out on that extra contribution. The 2020 maximum is $19,500.
- Consider catch-up contributions for your 401(k). Once you reach the age of 50, you become eligible to make “catch-up” contributions. In 2021 you can contribute an additional $6,500 in a 401(k).
- Determine what your retirement will look like. If you haven’t already, start planning the details of your retirement. Think about what age you want to retire, whether you will stay in your current home or downsize, if you want to work a part-time job and decide if traveling will become your new hobby. Think of anything that pertains to your lifestyle, and then figure out how much you will need to save to make that goal a reality.
- Consider supplementing your retirement income. Are you looking for ways to supplement your retirement income? There are plenty of opportunities, but be sure to weigh all the options.
During a time with so many decisions to make, remember to keep your retirement in mind.
“It is never too early or too late to start solidifying your retirement plan,” says Ameris Bank Head of Wealth Management Dave Johnston. “If you are feeling overwhelmed by the current environment or don’t know where to start, we are here to help you navigate the ins and outs to ensure you are prepared. It can be comforting to get a second opinion.”
When you speak with a wealth advisor, you’ll gain reassurance that you are on the right track or feel more confident about the steps you’re taking today. Call or schedule an appointment with our wealth team to discuss your options and stay on track to achieve your goals.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Financial products made available or recommended by Ameris Bank that are not bank deposits are not insured by the FDIC; are not a deposit or other obligation of, or guaranteed by, Ameris Bank; and are subject to investment risks, including possible loss of the principal amount invested.