2024 Retirement New Year’s Resolutions
As we embark on the journey into 2024, it’s time to formulate resolutions aimed at crafting a solid financial plan for retirement.
Resolution #1: Refine Your Retirement Budget Strategy
Developing a retirement budget is crucial for ensuring financial security during your later years. With various income sources like pensions, Social Security benefits, and investments, it’s essential to assess whether they can sustain your desired lifestyle after retirement. Compare your monthly retirement income to expected expenses and consider trimming unnecessary costs. Testing your budget while still employed allows for adjustments to align with your retirement objectives.
Resolution #2: Eliminate High-Interest Debts
High-interest debts, especially credit card balances, can undermine your retirement income. Start the year by committing to reducing the use of high-interest credit cards and focus on paying off outstanding balances. Windfalls such as gifts or inheritances can be strategically used to reduce debt burdens. Exploring options like low-interest home equity loans can help consolidate debts, providing a clear path to a debt-free retirement.
“Remember – maximizing your TSP contributions not only secures your future but also takes advantage of employer matches, essentially providing free money.”
Resolution #3: Increase TSP Contributions
Your Thrift Savings Plan (TSP) is a fundamental element of your retirement strategy, offering control over your financial future. Prioritize maximizing your TSP contributions during the pre-retirement phase. Take advantage of employer matches by aiming for at least a 5% contribution from your earnings. With the 2024 TSP contribution limit raised to $23,000 and a $7,500 Catch-Up Contribution limit for those aged 50 and above, there’s ample opportunity to bolster your retirement savings.
Resolution #4: Seek Guidance from FRC® Certified Advisors
Navigating the intricacies of retirement planning, particularly for federal employees, requires expert advice. FRC® certified advisors possess specialized knowledge in federal retirement benefits, providing customized strategies for a smooth transition into retirement. Schedule a meeting with an FRC® advisor to benefit from their expertise and secure your financial future. Explore available advisors in your area to embark on a well-informed retirement journey.
