Goals

Planning for Retirement

Planning for Retirement? It's Never Too Soon to Start!
Your retirement dreams are unique, and so are your income needs. The Hartford can help you create the plan that's right for you.

What kind of retirement do you have in mind? You may want to spend your newfound free time globetrotting, while your neighbor is treasuring the chance to spend quiet nights at home after years of business travel. Whatever your dreams may be, it's important to have a retirement plan that's as individual as you are. 

How Much Will You Need?

Start by determining your "income replacement ratio"—how much of your current income you'll need to replace when you stop working. For example, if you make $60,000 a year now, how much will you need when you retire? Chances are you'll need a bit less, since you won't have some of the expenses you incur today. But it's different for everyone.

Most financial advisors suggest that people plan to replace 70–90% of their income when they retire. Your financial advisor can help you pinpoint your ratio, based on your projected sources of retirement income and your overall lifestyle. Our retirement planning worksheet can help you understand your retirement income needs.

How Will You Pay for What You Need?

Identify your sources of income in retirement. Many people count on employer-sponsored retirement benefits and Social Security to help meet their needs, but personal savings play an increasingly important role in retirement strategies today.

Your employer's 401(k) retirement plan is a great way to save because of its tax advantages. Also consider individual retirement accounts (IRAs) for their tax-advantages and annuities which offer tax-deferred earnings and income for life.

Create an Investment Strategy

Your retirement investment strategy should be based on several factors:

  • What are your retirement goals?
  • How much will you need in retirement?
  • How much will you need to save?
  • When do you want to retire?
  • How comfortable are you with market risk?
  • What investment mix is right for you?

See your financial advisor to review your retirement strategy. It's never too early to start.

Understand Future Expenses
Your insurance needs will change when you retire, but they are still an important factor to consider when estimating your retirement expenses. For example:

  • Life insurance: After retirement, you may need less life insurance. You'll want to make sure that your life insurance coverage is appropriate for your retirement lifestyle, financial needs and goals.
  • Auto insurance: Retirement is a good time to reevaluate your auto insurance needs. For example, you may use your car less than when you were working, which could lower your premiums. Also, you want to ensure that your liability coverage protects the assets you've spent a lifetime accumulating.
  • Homeowners insurance: If you think you'll downsize your living space, you may be able to reduce your homeowners insurance premiums.

 

 The AARP Insurance Program from The Hartford

Designed exclusively for you and the way you live, this program offers very competitive insurance rates, outstanding protection and dedicated service for auto, home and other types of insurance.  

Visit the AARP Home and Auto Insurance Program site for more information.