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Scottsdale, AZ 85259

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G. Wayne Neill CPA/PFS, CFP

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Making Up for Lost Time: How to Boost Your Retirement Savings

Making Up for Lost Time: How to Boost Your Retirement Savings

| June 09, 2025

Realizing you have less saved for retirement than you think you’ll need can be concerning. Despite potential setbacks like supporting children through college or managing unexpected expenses, it's never too late to take action, starting with refining your goals.

4 Tips for Setting Retirement Savings Goals

  1. Evaluate your current position: A clear understanding of your current situation can help you strengthen your retirement preparation. An online retirement calculator can help you estimate how much you’ll need to close the gap between your current savings and your goals. For a more comprehensive analysis, contact the office.
  2. Understand future expenses: Consider your anticipated retirement expenses, including lifestyle choices, travel, recreational activities, and your legacy. Potential healthcare should also be taken into account, as medical expenses typically increase with age.
  3. Plan for housing costs: Housing plays a significant role in retirement planning, whether you’re planning on staying in your current home, downsizing to a smaller space, or moving to assisted living. Maintenance, property taxes, and potential home modifications to support aging in place should also be factored into your calculations.
  4. Account for inflation: Remember that a dollar today will buy less in the future. Planning for rising costs of essentials like groceries and utilities helps you set strategic and informed retirement goals.

Key Considerations for Retirement Planning

Understand Social Security's Role in Your Retirement

Social Security is a government program designed to provide income support during retirement. This benefit is calculated based on your highest 35 years of earnings. Maximizing your income in your remaining working years can help replace those lower-earning years and increase your future benefits.

Explore Retirement Account Options

Employer 401(k) plans, especially those with matching contributions, can be an effective investment vehicle. You can also consider Roth IRAs for tax-free growth and flexible retirement income strategies, which are particularly beneficial for those anticipating higher future tax brackets.

Ways to Boost Your Retirement Savings

Take Advantage of the SECURE 2.0 Act

The SECURE 2.0 Act introduced provisions that may enhance retirement saving opportunities for those approaching retirement. These changes include expanded access to workplace retirement plans, increased flexibility for contributions and distributions, and new catch-up provisions for those aged 50 and above.

Downsize Your Home

An expensive home can strain retirement savings. Downsizing may free up equity and cash flow, and selling a home can also provide tax benefits. Individuals can exclude up to $250,000 of profits from taxes, and married couples filing jointly can exclude up to $500,000.

Last Resort: Cash Values on Insurance Policies

If other strategies fall short, you can explore cash-value life insurance policies. However, carefully consider the potential trade-offs, such as reducing the policy’s death benefit or triggering taxes.

Work With Us

Catching up on retirement savings may feel overwhelming, but you don’t have to do it alone. Together, we can tailor your strategy and help you make informed decisions to work toward your goals. Contact my office today to start the discussion.

  

This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.

The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.