Get Yourself a Retirement Plan for Christmas
December 20, 2022
A retirement plan for Christmas is the best gift you can give yourself before the year concludes. The holiday season is a time for decorating, feasting, shopping, and celebrating. For some, the holidays are stressful when difficult financial decisions are necessary to create a memorable event for family members. If you are concerned about choosing between spending money on Christmas gifts and saving for retirement, you are in good company. However, the holidays are a great time to prioritize your retirement planning to ensure security for yourself and your family and to invest in comfortable Christmases for years to come.
Retirement Plan for Christmas
Studies show consumers spend an average of around $1000 on gifts, decorations, food, and other seasonal expenses during the holidays. Because only 54% of Americans report having a retirement account, overspending during the holidays is not a smart idea. A retirement plan for Christmas is the best investment for you and your family.
Why You Should Get a Plan Now
Planning for retirement is an urgent need. Longer life spans, current changes to employee benefits, escalating health care costs, and an inability to rely on the Social Security system for retirement support make it critical to start the planning process immediately. The IRS has adjusted contribution limits for 401(k) plans in 2022 to $20,500, enabling taxpayers to deposit an extra $1,000 in their retirement fund. For those who have not prioritized retirement planning in the past, this is a crucial way to increase savings in the short term.
Prepare Yourself for the Future without Worry
The amount you need for retirement varies depending on your short and long-term goals, current income, existing expenses, and projected future expenses. Conventional wisdom recommends you plan to use savings and Social Security to replace 70-90% of your pre-retirement income. There are numerous retirement calculators that can help you plan how much you will need.
How It Benefits You
Retirement plans carry numerous tax advantages, allowing for contribution of pre-tax dollars to save money. Employer matching programs also enable rapid growth of retirement funds through 401(k) accounts and similar plans. Do not overlook the physical and emotional benefits that accompany the fact that you are securing your future. The peace of mind that comes with financial planning eases stress and the physical ailments it often causes.
Tis the Season
You have probably never considered including retirement savings as a gift to yourself. Here is why a retirement plan is the best Christmas gift you can give yourself:
- The sooner you start saving, the earlier you will reach your goals.
- Most retirement plans require around 37 years to reach maximum returns, so now is the best time.
- The end of the calendar year is the perfect time to review finances.
- December is the last chance to contribute the maximum to a superannuation fund.
Don't forget to give back to yourself in the season of giving. Incorporate a retirement plan into your holiday to-do list.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.