We’re nearly halfway through the year, which makes this the perfect time to take stock of your retirement progress.
Retirement planning isn’t a “set it and forget it” process. Changes in your career, finances, federal benefits, market conditions, and retirement goals can all affect whether you’re still on track for the future you envision.
Many federal employees put off reviewing their retirement plan because they’re unsure what to look for, what has changed, or whether they’re making the right decisions. But waiting too long to identify gaps or missed opportunities can make it harder to adjust course later.
That’s why a mid-year retirement checkup can be so valuable.
Here are three mid-year moves to make:
1. Increase Your Retirement Savings
Increase your Thrift Savings Plan (TSP) contributions to at least any matching contributions and then shoot for more. If you aren’t at the maximum but can’t take a drastic drop in your paycheck today, simply increase your savings by one percent. Do this every year, and you’ll be surprised at how much you can save. Remember time is in your favor, so the more you can contribute now to your retirement, the bigger your nest egg can become.
2. Get Your Annual Health Checkups
To enjoy your life and future retirement, get in the best physical shape possible. As the saying goes, “health equals wealth.” Preventing illness and catching health issues early are vital to longevity, as well as keeping healthcare costs as low as possible. So be sure to set up those appointments between now and the end of the year.
3. Update Your Financial Plan
Review your financial plan with your financial advisor early enough to take any necessary action before year end. Have any of your goals changed? Are you still on track to replace your income in retirement? Review your situation and make any needed adjustments.
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Many people focus on their personal finances in the New Year, but then don’t check in regularly to stay on track. A mid-year financial checkup is important to your personal financial health, because as many people experience, the months fly by as we enjoy our lives.
If you don’t check your progress now and again, and take action, another year will roll around before you know it. Without routine monitoring, it’s easy to find yourself in the same financial situation you were in at the end of last year.
The year is halfway over, but it’s not too late to get your finances and retirement planning back on track. Taking a few simple steps now can help you avoid costly surprises later and put you in a better position to own your federal retirement.
About Chris Kowalik
Chris Kowalik is a federal retirement expert and frequent speaker to federal employee groups nationwide. In her highly-acclaimed FedImpact Workshops, the FedImpact Podcast, and the FedImpact Webinars, she empowers employees to make confident decisions as they plan for the days when they no longer have to work. Chris’ candid and straightforward nature allows employees to get the answers they need and understand the impact these decisions have on their retirement.
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