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March 31, 2026
Ask anyone still working in their 50s and 60s about their plans for retirement, and you’ll often receive responses about places they want to go, hobbies they plan to get into, and how much free time they’ll have. However, that’s only half of the story when it comes to retirement. In order to take that trip to Peru or get really into soap carving, you’ll need to have a plan for how you’ll pay for everything once you’re no longer receiving a paycheck.
The truth of the matter is: you don’t have to wait until your super wealthy to retire. You just need to ensure you have enough money to get by. Once you no longer need to worry about going broke or paying for medical expenses, you can start focusing on ways to improve your life satisfaction.
So, let’s talk about how you achieve that goal.
Circling back to the start of this article: what are your plans for retirement? Ask yourself if you want to travel, whether you’d like to move to a new house, if you plan on working part-time or if you want to spend your time volunteering in local organizations. How you plan to spend your retirement will help inform how much you need to save to achieve the retirement you want.
In addition to the “fun” things you want out of your retirement, you also need to take into account that you’ll need to pay for medical expenses, food, gas, taxes, and debts.
Think about how much you spend right now on these things and determine if you want to cut back on your standard of living. Most of your day-to-day expenses will remain the same, but things like commuting costs, dining out and clothing may change depending on your situation.
Once you have an idea of your expenses, realize that you will need to pay for these expenses through a combination of annuities from your retirement savings, investments, and Social Security. This gives you a target number that you can use to plan out your retirement saving strategy.
There is a quote often attributed to Albert Einstein that “the most powerful force in the universe is compound interest.” While the origin of this quote is debated, it reflects the importance of starting early when it comes to saving. Interest compounds over time, so the sooner you begin putting money into a retirement account, the more time you have to take advantage of the effects of compound interest.
Explore Your OptionsIf you haven’t already, consider opening up an Individual Retirement Account (IRA) to start putting money into it. Determine how much you can contribute from each paycheck to your retirement account and set up automated recurring contributions to ensure that a portion of your income is allocated to your retirement fund. This takes out the temptation to skip contributions and makes the process less stressful.
There are different types of IRAs you can choose from, each with its own benefits and drawbacks. You should consult your financial advisor or IRA specialist to help you determine what is best for your situation.
You should also check with your employer to see if they offer a 401(k) benefit. These accounts are similar to IRAs but the funds are automatically taken out of you paycheck and many employers offer matching contributions, which is essentially free money.
It can be tempting to “set it and forget it” when it comes to retirement savings. Our brains are wired to be more concerned with the here and now than to worry about our future. But as circumstances change, whether it be an increase in your standard of living or a change in priorities, you should make a point to periodically revisit your retirement strategy.
You should revisit your contributions if your current situation improves to the point that you can comfortably increase the amount you’re putting away each month. Your goal should be to eventually reach the IRA contribution limit and max out your yearly contributions to ensure you have a comfortable nest egg when you retire. Individuals age 50 or older, there is also a “catch up” amount that allows you to contribute even more to your retirement.
Retirement is a major transition made up of many financial and life decisions. The choices you make now will impact how comfortable you are when it comes time to retire.
You might also want to consider regularly updating your retirement plans and seeking the professional guidance of a financial adviser. That way, you can spend more time focusing on everything else that matters.
Jenna Smith is an Assistant Vice President and the Branch Manager for New Tripoli Bank's Claussville Office, as well as a certified IRA Services Professional who has worked for New Tripoli Bank since 2006. She completed the PA Bankers Advanced School of Banking and has been helping customers for many years. She has dedicated her career to learning all she can about banking and finance and in her free time enjoys spending time with her family and working on arts and crafts.
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