Retirement Confidence: How to Build It and Keep It

Shawn Plummer

CEO, The Annuity Expert

When it comes to retirement, there’s no room for doubt. However, it would be best if you were confident in your ability to retire comfortably and take the necessary steps to make that happen. This guide will discuss how to build retirement confidence and keep it strong throughout your golden years.

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Calculating How Much Money You’ll Need In Retirement

To be confident in your retirement plan, you must first figure out how much money you’ll require. Estimating loosely will not do. You don’t want to underestimate or run out of money when figuring out how much cash you’ll need. It’s critical to be accurate.

Calculating the precise amount for your retirement allows you to focus your money-saving efforts and investments while giving you a precise aim. This is empowerment.

When retirees cease working, they generally require about 80% of their pre-retirement income to cover food, shelter, and transportation necessities. According to the US Department of Labor, this is true for most Americans.

But when you retire, you’ll almost certainly want to pursue other aspirations, such as traveling or relocating. So whatever you have planned for your future after working should be considered. To ensure that your plan covers these costs, research the expenses associated with those goals and activities before putting pen to paper.

Retire With Confidence

Assess Your Finances And Set A Budget

After you’ve figured out how much you’ll need to live comfortably in retirement, it’s time to look at your income and savings to figure out how much money you’ll need to set aside each month to achieve your retirement objective.

The easiest method to accomplish this is to create a budget around your anticipated retirement costs. A budget will help you stay on track with your savings and provide you with a real-time visual of how far you’ve come toward achieving yours. So how can seeing your retirement savings in action possibly boost your confidence?

  • Begin by looking at your bank statements and invoices to make a list of what you spend every month. Non-essential and essential expenditures should be included in your list.
    • Rent or mortgage, food, utilities, and credit card and loan payments are all examples of necessary expenditures.
    • Non-essentials are services like TV applications, subscriptions, and memberships.

Be sure to include as much detail as possible in your budget so you can see where you’re spending too much.

Tighten Your Budget

You may need to reduce your budget to save more money for retirement. To make this easier, Prioritize your expenditure list, then remove the non-essential items that appear at the bottom. Cutting costs may be challenging, so you’ll have to decide what’s more essential to you as you work toward retirement.

Retiring Confidently

Commit To Your Budget By Tracking Your Spending

To maintain confidence, you’ll need to adhere to your budget. It’s a good idea to monitor your spending regularly so you know where your money is going and where you may be overspending.

Eliminate Any Debt

We all have credit card bills, a mortgage on a house, or even outstanding university debts.

Adopting a cautious approach to debt elimination is also essential since adjusting your spending can help you build up your retirement funds.

Consider moving balances to a low-interest credit card to combine your debts and get on track.

  • Reassessing your essential expenses, such as a mortgage, rent, cars, and food may help you save money.
  • Non-essential expenditures such as eating out and streaming subscriptions might be reduced or canceled.
How To Build A Retirement Plan

Consider Guaranteeing Your Retirement

Adding a fixed index annuity (FIA) to your retirement portfolio can assist in safeguarding your savings from market volatility while providing consistent lifetime earnings. An FIA allows you to deposit funds into a tax-deferred fund, with the option to receive certain payments for life without investing in the stock market. It may not offer as much interest as a stock market account, but you are assured not to lose money due on occasion, which goes a long way toward building confidence in your investment.

Fixed-indexed annuities also can guarantee your future income today, which creates a clear path to your retirement income needs.

Have An Emergency Fund

Having an emergency fund is an excellent way to boost your retirement confidence. Your aim should be to have enough money set aside so that you and your family can make it through unemployment, sickness, or other unforeseen circumstances. This will safeguard the funds you’ve put away for retirement. Experts recommend establishing an emergency fund equal to six months of living expenses.

Utilize A Financial Professional

Retirement can be a time-consuming process. If you aren’t sure about your plans, utilize a financial advisor (like The Annuity Expert) to help you reach long-term financial goals.

Next Steps

Retirement planning is daunting, but it’s essential to approach it confidently. Following the tips in this guide, you can build a retirement plan to give you the confidence you need to enjoy your golden years. Thanks for reading, and best of luck in your retirement planning!

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*Disclosure: Some of the links in this guide may be affiliate links. I may receive a commission at no cost if you purchase a policy. It helps us keep the lights on!

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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