January 6, 2022
Making and Keeping Retirement Savings Resolutions
When thinking about New Year’s resolutions, saving for retirement might have been the last thing on your mind. But as we navigate 2022, optimizing your long-term retirement planning strategies is key. Creating a retirement to-do list to make sure you’re on the right track for your future, while ensuring you can meet your near-term spending needs can help.
1. Compare your retirement savings goals against your asset allocation and adjust, if needed.
It’s smart to review your retirement account(s) each year to ensure your asset allocation still accurately reflects your age, risk tolerance, expected retirement date and anticipated lifestyle. Not sure what makes the most sense for you? Mutual of America’s Investment Questionnaire helps you determine the allocation that corresponds with your specific goals and preferences.*
2. Review your per-paycheck retirement contributions and increase them, if possible.
While doing so might feel challenging in the short-term, increasing how much you contribute to your retirement account can pay off in the long-term—even when you boost your contributions by just a small percentage. Review contribution limits for 2022, and consider upping your contributions, if you can.
3. Check in on your employer match (if applicable), and see if you can max it out.
Depending on your company’s retirement plan, you may be eligible for an employer match, through which your company will match a certain percentage of your regular contributions. Double-check the Summary Plan Description or similar material you received from the plan administrator to see if you’re contributing enough per paycheck to max out your employer match.
4. Ensure your beneficiaries are listed and up to date.
Take control of your legacy by proactively reviewing your beneficiaries to ensure any funds go to your intended recipients upon your death. You can download a Beneficiary Designation Form directly through the My Account page of the Mutual of America website.
5. Create your 2022 budget and set a plan for building an emergency fund.
While it’s certainly important to think about the long-term when it comes to saving for retirement, you also need to account for your financial needs now. As you build your annual budget, develop a plan for creating an emergency fund that can cover any unexpected expenses.
For any questions about your retirement account(s), please contact your local Mutual of America representative today.
Percentage of workers currently participating in a workplace retirement savings plan who have actively chosen their investments.
2021 Retirement Confidence Survey. Figure 4. EBRI/Greenwald Research Retirement Confidence Survey. April 2021.
52-Week Savings Challenge
Did you know that Mutual of America’s 52-Week Savings Challenge can help you create a nearly $1,400 cushion over the course of a year? Save just $1.00 in the first week to get started. Learn more here.
Financial Term of the Month: Municipal Bond
Municipal bonds (or munis) are debt securities issued by state or local governments or their agencies to finance general governmental activities or special projects. You can think of them as loans that investors make to local governments. For example, a state may use them to fund the construction of highways or public schools.
*Information and interactive calculators are made available as self-help tools for independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regard to individual circumstances. All examples are hypothetical and are for illustrative purposes only. We encourage individuals to seek personalized advice from qualified professionals regarding all personal finance issues.