OCALA, FL (352today.com) – Retirement often represents a long-awaited milestone, offering the freedom to spend time as one sees fit. However, that sense of freedom largely hinges on financial security. As professionals approach retirement, safeguarding and growing wealth becomes a critical focus to ensure the golden years are as enjoyable as envisioned.

While financial planning is typically emphasized for young professionals, those nearing retirement must also take proactive steps. Here are three strategies to help future retirees secure the financial freedom they deserve:

Plan to Grow Your Wealth in Retirement

Many assume that retirees require less income since they’re no longer saving for retirement. However, some expenses, such as healthcare costs and the rising cost of living, tend to increase in retirement. This makes it essential to focus on growing wealth even after leaving the workforce.

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Collaborating with a financial planner can help retirees navigate the delicate balance of protecting their existing savings while ensuring those funds continue to grow over time.

Maintain a Balanced Investment Portfolio

Conventional wisdom suggests reducing risk as retirement approaches, but modern retirees are living longer and may need to retain a mix of investments to avoid outliving their savings.
A study from the Schwab Center for Financial Research revealed that a retiree with a $2 million portfolio maintaining a 60% stocks and 40% bonds/cash mix could retain nearly $1 million after 30 years. By contrast, a portfolio with just 20% stocks and 80% bonds/cash could deplete entirely before year 29.
Diversifying investments and managing risk appropriately can help retirees sustain their finances over the long term.

Maximize Contributions While You Can

For individuals who find themselves behind on retirement savings, catching up is critical. A 2024 survey by Prudential Financial revealed that the median retirement savings for 55-year-olds was less than $50,000—well below the recommended benchmark of eight times one’s annual income.
Professionals nearing retirement can boost savings by contributing the maximum allowable amounts to retirement accounts. In 2024, individuals can contribute up to $23,000 to a 401(k) and $7,000 to an IRA, with an additional $1,000 catch-up contribution for those aged 50 and older.

Retirement symbolizes freedom, but that freedom is best enjoyed with financial stability. By employing these strategies, professionals can enter this new phase of life with confidence and the resources to make the most of their golden years.