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Take a first step toward retirement readiness

When it comes to saving, the actions you take today can make a big difference in terms of when you can retire and how much money you’ll have for your retirement years. Taking steps now will give you greater control over your financial future. Here is a three-step process to help you work through some of the decisions and financial issues you will face.

Step 1 – Set objectives
When and where do you plan to retire? Will you continue to work part-time? Will you have any big expenses, such as sending kids to college or caring for an elderly parent?


Step 2 – Determine how much you’ll need
Many financial experts estimate that you’ll need 80-100% of your preretirement income per year to maintain your current standard of living after you retire. According to Ray Martin, president and CEO of CitiStreet Advisors, LLC, the following are some guidelines you may want to think about based on your age today:

In your 20s
Save at least 10% of your income, and consider higher risk investments, such as stocks.

In your 30s
Save 10-15% of your income, and continue to invest aggressively, primarily in stock funds. Reevaluate as you make major purchases, such as a house.

In your 40s
Save 15-20% of your income, and invest it in more conservative investments, such as a balance between stocks and bonds. Review your retirement savings against your goals and make adjustments. You may want to talk with a financial advisor.

In your 50s
Continue to save, and speak with a financial advisor to determine your best course. Take advantage of “catch-up contributions” available in an IRA and the county’s deferred compensation. Consider moving your

Step 3 — Watch your nest egg grow
The money you have in savings and retirement plans, Social Security and your pension plan through PERS, LEOFF, PSERS or City of Seattle may not be enough to meet your retirement goals. If not, you will want to reevaluate and consider other retirement savings plans.