Saving for Retirement

If you're like most people, you may spend about 20 to 30 years in retirement. That's a significant amount of time where you'll want to make sure you have enough money to live the lifestyle you want and to make sure your savings outlive you.

  • Set a Goal
  • Create Your Plan
  • Saving Strategies

Ever heard the saying that goals not written down are just wishes? That applies to your retirement goals too.

Identify Your Goal

When do you think you will retire? How much will you need to maintain the retirement lifestyle you envision? Knowing when and how much money you will need will set your target so you can invest accordingly. 

  • Write down your goal amount and use it as a basis for your retirement planning and investing decisions. 
  • Be specific about the amount of time you have. 
  • Based on these two factors, use our Time-Value Calculator to determine how much you may need to save to reach your goal by retirement.

    Next: Create Your Plan

If you're just starting your career, having a retirement plan may not seem like a priority, but it's actually the best time to consider your future because you have the luxury of time. If you've been working for awhile, it's not too late to get a plan working for you.

Build Your Plan Today

Our Planning for Your Retirement tool can help you develop a solid retirement plan in about 15 minutes. Or if you prefer, you can call one our experienced Investment Consultants at 1-800-345-2021 and we'll walk you through developing your plan.

Need more time to consider your plan?

Below are some of the questions you'll want to have answered as you develop your plan, and some tips to help you answer those questions.

How much could you have?

  • Take inventory of all your retirement savings accounts, Social Security or perhaps a pension plan.
  • Think about whether you'll continue working.
  • Consider income you might receive in other ways, such as from the sale of a home or business.

How much could you need?

  • Conventional thinking says you will need 70% to 80% of your pre-retirement income each year to maintain a similar lifestyle in retirement.
  • Consider major expenses that you might not have now, such as potentially higher health care or long-term care expenses. 

How long could it last?
Two major factors that will impact how long your money will last include the following:

  • How much you withdraw from your savings each year. 
  • The strategy you use for withdrawing your money.

How should you invest?
Choosing investments that help you balance risk and reward with help you earn money and preserve your retirement savings.

Explore Retirement Funds to find out what investments may be right for your retirement portfolio.

Next: Saving Strategies

Whatever stage you are in planning you retirement, putting aside money for the future makes sense. How much you choose to save depends on your individual situation and how long you have until you retire. If your employer offers a retirement plan, you'll want to make sure you take advantage of any matching contributions they might offer. In addition, the following strategies have been successful for many investors.

Open an IRA

Even if you have a retirement plan at work, an IRA provides another tax-advantaged way to save for your retirement goal. Find out more in the IRA Center.

Max Out an Existing IRA

Contributing the full contribution limit to your existing IRA will help you take advantage of potential future earnings and tax benefits. If you are age 50 or above you can make an additional catch-up contribution to help make up for any lost investment time in the past. Review IRA Contribution Limits.

Save Automatically

This "set it and forget it" strategy helps eliminate the guesswork about when to invest by automatically adding to your retirement savings on a regular basis. Find out more about automatic investing.

Plan Your Investments Based on Your Tolerance for Risk

Our Investment Planner tool provides complimentary investment guidance and begins with a few questions. Based on your answers, we can help:

  • determine your risk tolerance and investor profile
  • Show you a compatible asset allocation and American Century Investments® fund

Balance Your Portfolio

Spreading your investments among stock, bond and money market funds can help lower your investment risk, and even out price swings during the normal ups and downs of the markets. Although this diversification strategy cannot ensure against loss, it has been successful for many investors.

Stay on Track

Review your investments regularly, either on your own or with an Investment Consultant.

Keep a Long-Term View

The more time you have for your investments to grow and compound, the more likely you are to reach your goals.

IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

This information is for educational purposes only and not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.

Past performance is not a guarantee of future results. Investment return and principal value will fluctuate and it is possible to lose money by investing.

Earnings in an IRA are tax-deferred until withdrawal. A 10% penalty may apply to withdrawals before age 59½.

Brokerage Services are provided by American Century Brokerage, a division of American Century Investment Services, Inc., registered broker/dealer, member , .