Securing your future: A comprehensive guide to retirement

You may be surprised to learn that the National Council on Aging (NCOA) reports that most older Americans do not have the financial resources necessary to withstand a "financial shock." This could include unexpected long-term care needs, significant health issues, or a sudden loss of income due to divorce or widowhood. In fact, an analysis of 2024 data revealed that 80% of Americans 60 and older are either financially struggling or at risk of falling into economic insecurity as they age.

Retirement is often envisioned as a time to relax and enjoy life but achieving a secure and comfortable retirement takes careful planning. At Copper Financial, we understand that life is full of twists and turns, and we're committed to helping you navigate them with confidence. Our personalized financial planning services are designed to help you assess whether you're ready to handle whatever comes your way. Together, we'll build a retirement strategy designed to help you manage financial uncertainty while supporting your personal goals and aspirations, making your golden years as fulfilling as possible.

Here are five key factors to check to see if you're on track for a secure retirement:

1. Evaluate your savings

Have you saved enough to sustain your desired lifestyle in retirement? Financial experts suggest having at least 10-12 times your annual income saved by the time you retire. However, this figure can vary depending on factors such as your retirement goals, anticipated expenses, and life expectancy.

Working with a Wealth Advisor can help you establish a personalized retirement savings target. Together, you can evaluate whether your current plan is sufficient or if adjustments are needed to bridge any gaps.

2. Plan for healthcare costs

Healthcare is one of the most significant expenses in retirement, and it can quickly derail even the most well-structured plans. Understanding what Medicare covers-and where coverage gaps exist-is essential.

Explore supplemental insurance options to fill those gaps, and budget for long-term care expenses, which can increase as you age. Setting aside dedicated funds for healthcare can provide peace of mind and protect your overall financial plan.

3. Diversify your income streams

Social Security is a vital source of income for many retirees, but it's often insufficient to cover all expenses. To mitigate financial risks, aim to diversify your income sources.

Consider options such as annuities, rental income, or investment portfolios. A diversified income strategy not only provides stability but also cushions against market fluctuations or unexpected financial shocks, giving you greater confidence in your retirement security.

4. Minimize debt

Entering retirement with substantial debt can significantly strain your finances. Prioritize paying off high-interest debt, such as credit card balances, and consider reducing other obligations, like mortgages or car loans.

Living debt-free in retirement allows your income to go further, enabling you to focus on essentials and enjoy discretionary spending without added stress.

5. Build an emergency fund

Even in retirement, life can be full of surprises. Having an emergency fund with 6-12 months' worth of living expenses is essential for weathering unexpected situations, such as home repairs, medical emergencies, or family support needs. By keeping this fund separate from your long-term investments, you can address unforeseen expenses without jeopardizing your retirement portfolio.

Retirement should be the time to enjoy the fruits of your labor-a period of fulfillment and relaxation. Regularly evaluating these key factors can help you stay on track to achieve the retirement you've always envisioned.

Whether you're just beginning to plan or reassessing your current strategy, a Wealth Advisor can provide personalized guidance. Together, you can navigate your financial future with confidence and help place you on a secure, rewarding path to financial well-being. Schedule a complimentary consultation today.

Securities and advisory services offered through Copper Financial Network, LLC ("Copper Financial"), a broker-dealer and SEC registered investment adviser. Member FINRA/SIPC. Your Credit Union has contracted with Copper Financial to make non-deposit investment products and services available to its members. Representatives are registered with Copper Financial. Your Credit Union and its investment group (if applicable) are not broker-dealers or investment advisers and are not affiliated with Copper Financial. For important disclosures from Copper Financial please visit here. 

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