A Simple Retirement Review Can Quickly Make You Feel More Confident

Worried about whether you are ready for retirement? If you have not built a strong plan yet, you are far from alone.

Many Americans do not have a 401(k), and among those who do, the median retirement savings balance is only $2,500, according to Forbes data. If that sounds familiar, there is still time to take practical steps that can strengthen your savings and improve your financial stability. The following retirement checkup can help you feel more secure as you work toward retirement.

Raise Your Retirement Contributions

Start by looking over every retirement account you have, including accounts from current and former employers, along with any other savings you have set aside.

Put together a spreadsheet that lists your balances, your employer match, and both your current and past contributions. If possible, try to raise your contributions until you reach the maximum allowed each year, or work your way up gradually by increasing them a little at a time.

If your employer offers matching contributions, review the plan details so you know how much you need to contribute to receive the full match.

Combine Multiple Retirement Accounts

If you have several retirement accounts, consider consolidating them into one place. Doing so can give you a clearer picture of your overall savings and make it easier to follow your progress.

You may also reduce paperwork and administrative hassles, with fewer logins, statements, and account details to manage. Another option is to roll the money into a single IRA or into your current employer’s 401(k), which can simplify account management.

Review Your Progress Each Year

A good habit is to check your retirement savings once a year. Review your investments and the fees you are paying, and see how your money is divided between stocks, bonds, and other assets to decide whether the mix still fits your goals.

Think about whether the level of risk still feels comfortable. As retirement gets closer, you may want a more conservative approach, such as a target date fund, which adjusts your portfolio based on your expected retirement year.

Target date funds simplify investing by automatically shifting your asset mix as you near retirement.

Rebalance to Restore Your Original Mix

Market swings can cause some investments to rise or fall, changing your risk level. For example, a portfolio that starts out as 80% stocks and 20% bonds could shift to 90% stocks and 10% bonds without you noticing.

Rebalancing brings your portfolio back to its intended allocation. According to Fidelity, that can help reduce risk. If you need guidance, a financial advisor can help you make the adjustments.