A retirement plan is important to your business — and to all the employees relying on it for income later in life. However, mistakes and confusion can turn retirement plans from an attractive benefit into a liability.
It’s important to conduct regular check-ups on your retirement plan to make sure you are on track in working towards your retirement goals. Below are a few questions to ask yourself, at least annually, to see if (and how) they affect your retirement planning.
1. Review the Past Year
Did you receive a raise or inheritance?
An increasing number of Americans are facing an uphill battle just trying to save enough and earn enough on their savings to be able to retire on time.
If you have read any literature on retirement planning or have received advice from a financial professional, chances are you were presented with the 70% rule, the one that suggests that retirees will need between 70 and 80% of their pre-retirement income in order to maintain their standard of living.