Learn how a well-managed 401(k) can unlock a stress-free, fulfilling retirement.
Rather than reiterating working hard and contributing the maximum amount to your 401(k), weโre focusing on the importance of doing so by reminding you of the peace of mind a solid 401(k) can unlock for you in retirement โ because there are just so many things!
Maintain lifestyle: With a steady income from investments and a large savings cushion, you can maintain your lifestyle prior to retirement or finally live out your desired lifestyle. Retirement shouldnโt be about cutting back โ it should be about rewarding yourself for all the years of hard work and sacrifice.
Travel: Retirement is like unlimited PTO, so thereโs no excuse to not visit the places youโve been dreaming of. Never been to Europe or seen blue water? What are you waiting for?
Pursue hobbies and passions: Finally engage in the hobbies or passions you didnโt have time for or couldnโt allocate funds to. Whether itโs daily morning yoga classes or constructing your own in-home art studio, discover your guilt-free passion.
Volunteer: Stay busy and motivated without the responsibility and commitment of a job. When youโre not focused on working for a paycheck but rather on something you enjoy, working becomes more rewarding and fulfilling.
Investment flexibility: Continue to manage and grow your investment portfolio, so you can do more of what matters to you. If youโre unsure where to begin, take the first step of placing your savings in an account that earns interest.
Healthcare costs: Cover healthcare costs that may arise or increase with age. See top doctors without worrying about medical expenses. Medicare will pay for some of your costs, but donโt count on it covering everything. According to Fidelity, the average 65-year-old couple today will spend around $12,200 on health care in their first year of retirement.
Home upkeep: Maintain your home and make necessary modifications for aging in your current place. Make life easier and safer by installing handicap accessible features, if necessary, like a handicap scooter or extra railings in your home.
Gifts: Pay it forward by providing financial support to loved ones. Help in a way that can set them on the path to success, too, like covering tuition expenses or making an extra car or mortgage payment.
Legacy planning: Make a plan for passing on your wealth to the next generation. Meet with an estate planner and get your affairs in order to make things easier for your family. Educate your kin on how to responsibly inherit your wealth.
Long-term care: Moving yourself or your spouse into an assisted living or elderly care facility can get expensive. In 2023, in fact, the annual median cost for long-term care in the United States ranged from $24,000 to $116,000. Save for the expected โ and unexpected โ to ensure a comfortable and desired living situation in a long-term care facility.
Philanthropy: If youโre blessed with a more than comfortable financial situation in retirement and your family is taken care of, donating to a charitable cause close to your heart will leave you feeling fulfilled and the organization feeling grateful. To get more insight on how long your savings will last, check out our helpful retirement savings calculator tool.
Retirement is more than just a phase of life; it’s the reward for your years of hard work and dedication. By making the most of your 401(k) today, you can ensure that your future is filled with the freedom and fulfillment you’ve always envisioned.
Whether you’re just starting out or nearing retirement, Penn Community Bank is here to help you navigate your financial journey with confidence. Reach out to us today to learn how we can help you maximize your savings and achieve the retirement of your dreams.
