What to Consider When Planning for Retirement
Everyone knows that saving for retirement is important. Doing so at early ages certainly has its
advantages. The potential impact of compounding interest can play a significant role in
increasing your retirement savings. Consider this example assuming an 8% annual rate of
return. Saving $2,000 each year beginning at age 25 would result in approximately $560,000 at
age 65. If you waited until age 35 to do so, your savings at age 65 would be approximately
$245,000. In this example, saving at an earlier age resulted in $315,000 more of assets for
retirement.* Simply stated, saving at early ages can play a major role in your future retirement.
What many don’t realize is that proper retirement planning includes much more than just saving.
Factors such as inflation, rates of return, retirement income needs, taxes, along with many
others also need to be considered. Any planning for the future includes assumptions, which is
why it’s important to periodically update your plan. Retirement planning tools, ranging from basic
to complex, can be helpful in monitoring your progress. In the coming months, FORUM Private
Client Group will be providing a complimentary online retirement planning tool to assist with your
situation. If you’re interested in using this resource, periodically visit www.forumpcg.com for its
availability.
Because your future retirement is dependent on so many factors, seeking guidance from a
professional is something to consider. If you would like tailored advice on how to plan for
retirement, contact a financial advisor with FORUM Private Client Group at 317.558.6322 or
[email protected].
*“Retirement planning for 20-somethings”, www.bankrate.com
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