If you have concerns about whether you’re on the right track for your retirement planning, you aren’t alone. An uncertain economy and recent changes in government policies are causing many to wonder if their plans for saving for a comfortable retirement will be derailed.
Consider these three predictions that could affect retirement planning in 2017:
#1 – You Could Retire as a Millionaire
With inflation adjustments, the maximum amount of money that can be contributed to IRAs or employer-sponsored retirement savings plans, including 401K has increased. If you’re under 50, you can now put up to $5,500 yearly in your IRA and $18,000 in an employer-sponsored plan. If you’re right out of college and beginning to save for retirement, this $23,500 can build up to $1.04 million in 44 years if it compounds at nine percent a year.
#2 – Social Security Won’t Be Fixed in 2017
This year will not be the year to patch the Social Security system. Even though President Trump campaigned on the promise of preserving Social Security, there is still a lot of work to be done through Congress. Social Security is still on track to run out of money in 2034.
#3 – Baby Boomers Working Longer
To make ends meet, retired baby boomers are taking on part time jobs or putting off retirement. In some ways, this is good for the economy, but it also keeps better paying leadership jobs out of reach of younger workers as they wait for baby boomers to retire.
The good news is that even if the rules of the game change in 2017, as long as you have a strong framework to follow with your savings efforts, you can still meet your goals for retirement savings.