Are You Underfunding Your Retirement?

Planning for retirement is one of the most important financial priorities, yet it’s often overlooked in the hustle of day-to-day life. Many people underestimate how much they’ll need to live comfortably once they retire. Small oversights today can lead to large financial challenges in the future. Are you contributing enough to your retirement savings? If not, you could be underfunding your future. Here are some common signs to watch out for:

Signs You Might Be Underfunding Your Retirement

You’re unsure how much you’ll need for retirement.

Without a clear idea of your financial goal, it’s nearly impossible to save effectively. Many people guess at a number, but underestimating expenses like healthcare, inflation, or lifestyle needs can leave you short.

You’re not maxing out tax-advantaged accounts like a 401(k) or IRA.

Contributing below the maximum limits to accounts such as your 401(k) or IRA could mean you're missing out on significant tax benefits and potential compound growth opportunities. These accounts are powerful tools for building a healthy retirement fund.

You haven’t increased contributions in years.

If you haven't adjusted your retirement contributions as your income has grown, your savings may not keep pace with inflation or your future financial requirements. Regularly reviewing and increasing contributions can dramatically enhance your end results.

You’re relying on hope instead of a clear plan.

Hoping that things will work out without taking specific actions is a risky approach. Lacking a detailed, personalized strategy can create stress as retirement approaches—and leave you financially vulnerable later in life.

Take Action Today!

The good news is that it’s never too late to make changes. A personalized strategy tailored to your unique goals can help you catch up or stay on track. Working with a financial professional can provide clarity about how much you’ll need and the steps necessary to reach your goals. Together, we can explore ways to maximize tax-advantaged accounts, optimize your savings, and build a budget that works for your future.

Don’t leave your financial future to chance. The sooner you take steps to ensure your retirement plan is on solid footing, the more confident you’ll feel about achieving long-term financial wellness and security. Email us to start building your personalized plan today—and invest in financial confidence for the years ahead.