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Retirement Saving: 40s and Beyond

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Call us at 888-213-4695 or visit your local branch.

Whether your retirement is a few years or a few decades away, you still have time to keep building up your nest egg. Here are some retirement savings strategies that can help keep you on track.

Max out your contributions to your 401(k) or other work-sponsored retirement plan, especially if you receive matching contributions from your employer.

What you can do now:

  • Ask your HR department whether you’re contributing enough to get the full company match.
  • If you can afford to contribute beyond your employer match amount, we recommend contributing the maximum annual amount whenever you can.
  • If you're self-employed, contribute the maximum to your small business retirement plan. If you don’t have one yet, consider an Individual 401(k), a SEP-IRA, or a profit-sharing plan.

If you're age 50 or over, you can make additional "catch-up" contributions to eligible workplace retirement plans and IRAs.

What you can do now:

According to the Schwab Center for Financial Research, your retirement portfolio should be 25 times larger than the amount you expect to withdraw from it in your first year of retirement.1

You'll need to account for sources of income other than your portfolio, such as Social Security benefits, pensions, or income properties. This will give you a full view of your income stream. From there you can determine how much of your expenses your non-portfolio income can cover, and what your portfolio will need to cover.

Example: Estimate Your Needs

Total projected annual expenses in first year of retirement (including taxes) $90,000
Minus predictable income (e.g., Social Security, pension, rental income) ($40,000)
= Annual amount you’ll need to withdraw from your portfolio
x 25
Retirement portfolio target goal: $1,250,000

What you can do now:

Use our Retirement Savings Calculator to track your progress and get options to help you meet your goals.
  • If you’re a Schwab client, log in to use a more in-depth calculator that saves your information.

If you've maxed out your tax-deferred 401(k) and can afford to save more, consider opening and fully funding an IRA, or a taxable savings or brokerage account specifically for retirement.

What you can do now:

Consider these ideas to maximize your retirement income and investments.

  • Postpone retirement by a few years to build up a bigger retirement portfolio and shorten the time you’ll need to sustain retirement spending.
  • Increase your potential Social Security benefits by delaying the age you begin receiving payments (up to age 70).
  • Consider moving to a smaller or less expensive home, or to an area with a lower cost of living.
  • Work part-time to generate additional income.
  • Save money by paying off variable, high-interest debt if possible. Consider lower-cost and potentially tax-deductible forms of debt such as a home equity line of credit (HELOC).

What you can do now:

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Contact your Financial Consultant or call us anytime at 888-213-4695

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