5 Foundational Ways to Minimize Retirement Anxiety

The path to retirement can seem daunting, with the end goal appearing distant and difficult to reach. According to the Federal Reserve report on the Economic Well-Being of US Households in 2023, “The share of non-retirees who thought their retirement saving was on track [34%] was up from 31 percent in 2022 but below the shares who thought their saving was on track in 2017 through 2021.”¹ 

There are various strategies anyone can adopt to get their retirement savings back on track and minimize retirement anxiety. Here are five places to start:  

If your employer offers a 401(k) match, it’s crucial to contribute enough to secure the full match. It’s essentially “free” money that can exponentially boost your retirement savings over time. Remember, every dollar your employer contributes is a dollar less you need to save to meet your retirement goals. 

Ensure your retirement savings are invested in alignment with your personal goals, time horizon, and risk tolerance. At Credent, we emphasize each client’s Great Goals of Life (which include retirement goals, family goals, and legacy goals). An investment portfolio is built around a client’s financial plan and goals and incorporates strategic risk management techniques.  

“Have a plan!” is not just a catchy phrase — it’s a fundamental piece of advice for retirement. Your plan should define your retirement goals, map out your financial journey toward those goals, and create a contingency plan for unexpected expenses or changes in income. Regularly revisit and revise your plan to keep your retirement savings on track. 

Health Savings Accounts (HSAs) are an underutilized retirement saving tool. HSAs are triple tax advantaged: contributions are tax deductible, the funds grow tax deferred, and withdrawals for qualifying medical expenses are tax-free. In addition to your traditional retirement accounts, such as a 401(k) or IRA, consider incorporating an HSA into your retirement savings strategy. 

In challenging times, it can be tempting to tap into your retirement savings. However, it’s essential to remember that your retirement accounts are for the long term. To weather short-term financial difficulties, ensure you have an emergency fund separate from your retirement accounts. Compound interest is vital in retirement savings, and the larger your nest egg, the more it can grow over time. Therefore, avoid drawing from your retirement savings before you retire, if at all possible. 

Remember, your journey to retirement is not a sprint but a marathon. Start by taking small, consistent steps, such as securing your company match and investing according to your goals. Gradually, you’ll find your retirement savings back on track, steering you toward a comfortable and financially secure retirement. 

If you are feeling unprepared and struggling with retirement anxiety, reach out to an advisor using the form below.  

Adapted from: “Regain Confidence and Restore Your Retirement.” FMeX. 2023. https://abm.emaplan.com/ABM/MediaServe/MediaLink?token=a1d95355c8644d05a76692b30428e2f3 

Contributing source:  

1. Board of Governors of the Federal Reserve System. (2024). Economic well-being of U.S. households in 2023. https://www.federalreserve.gov/publications/files/2023-report-economic-well-being-us-households-202405.pdf