This is my 1st time reaching out, I’ve been lurking for a bit. But I wanted to get some feedback on my situation.
So, I’m 42, making about 90k a year, and I’ve got 240K in a 403b account. My company doesn’t match, and I’m currently putting in 400 bucks a month for retirement.
I could retire at 55 if I want to. Staying past 55 will up my pension, and I’m thinking of sticking around until 62 for that sweet 100k yearly from the pension and health insurance for life.
So, am I putting enough into that 403b? I’m always stressing that I’m not doing enough.
Will social security even be around in 25 years?
Is there something else I should be focusing on now? Instead of regretting not doing it sooner?
Best, Money Savvy
Response from THE MONEY MINDER:
Hello There,
Welcome to the community! It’s great to hear that you are proactively planning for your retirement. Your situation is unique, and it’s essential to ensure you are on the right track financially.
Considering your current salary and 403b savings, it’s commendable that you are thinking about retirement planning. While contributing $400 a month is a good start, with your income level, you may want to consider increasing your contributions to maximize your retirement savings. Since your company doesn’t offer a match, the responsibility falls on you to build a substantial nest egg for retirement.
Regarding your pension and potential retirement age, it’s fantastic that you have a clear plan and timeline in mind. Staying until 62 to increase your pension and secure health insurance coverage for life is a wise decision financially. However, ensure that you have a well-thought-out strategy that considers all your retirement income sources, including your 403b, pension, and potentially Social Security.
Regarding Social Security, while the future of the program is uncertain, it’s advisable not to solely rely on it for your retirement income. It’s crucial to diversify your retirement savings and investments to mitigate any risks associated with Social Security uncertainties.
In terms of what else you should be thinking about now, consider reviewing your overall financial plan, including estate planning, insurance coverage, and emergency fund. Additionally, exploring other investment opportunities or consulting with a financial advisor to optimize your retirement strategy could be beneficial.
Overall, it’s commendable that you are thinking ahead and seeking advice to improve your financial well-being. By continuing to assess your retirement goals, savings, and investments, you are taking positive steps towards securing a comfortable future. Remember, it’s never too late to enhance your financial situation. Keep up the good work!
Take care and best of luck on your financial journey,
THE MONEY MINDER
