Retirement Savings Plan Key Points​

The following are key points that you might consider as you develop a retirement savings plan:

• Try to determine what income you need in retirement.  Use the models presented in this guide if you want a rough estimate.
   
• Save early, consistently, and over as long a period of time as possible.  Use the American Savings Education Council’s Ballpark E$timator model to estimate how much you need to start saving for retirement.
   
• If you are managing your investments, then diversify.  Remember, you should be investing over the long-run.
   
• Consider purchasing an annuity with your 401(k) balance to address longevity risk. Insurance companies and financial advisors offer a variety of annuities. Some of these protect against longevity risk and some do not. Before buying any such product, you should consult a financial advisor who does not stand to gain a commission by selling you an annuity product.
   
• Consider other risks and ways in which you can address them.
   
• Take into account medical costs in retirement. Purchase supplemental insurance if necessary and set aside an emergency fund for unexpected medical costs.
   
• Talk to your HR professional, benefits counselor, or financial planner if you need professional advice and help developing a detailed retirement savings plan.