When you think about retirement, do you dream about traveling, volunteering with your favorite charity, or hanging out with the grandkids? Having enough money to make your dreams a reality requires planning and understanding how much you’ll need in retirement.
Income replacement refers to the amount of preretirement income you will need after you retire to maintain your current or desired lifestyle. Fidelity estimates that most people will need to replace between 55 percent and 80 percent of preretirement income to maintain their lifestyle after retirement.
The Retirement Savings Plan of the Presbyterian Church (U.S.A.) (RSP) can be a valuable resource for income replacement:
- Sign up. If you don’t already participate in the RSP, download the Fidelity Investments Enrollment Form for the 403(b)(9) Retirement Savings Plan of the Presbyterian Church (U.S.A.) and the Retirement Savings Plan Salary Deferral Agreement from pensions.org. Complete and sign the forms and give them to your employer to process. Or, contact the Board at 800-773-7752 (800-PRESPLAN) to request the forms.
- Save more. If you are an RSP participant, consider increasing the amount you save. Download the Retirement Savings Plan Salary Deferral Agreement from pensions.org. Complete and sign the form, then give it your employer to process. Or, contact the Board at 800-773-7752 (800-PRESPLAN) to request a form.
- Check in regularly. Do an annual savings checkup to make sure that you are contributing to the RSP (or other savings plan) as much you can, that your asset allocation is appropriate for your age and risk tolerance, and that your beneficiary designations are up to date.
- Get free, confidential guidance. Once you participate in the RSP, you can use the free and confidential service of Fidelity Workplace Planning and Guidance Consultants. Call 800-642-7131 today for an appointment (mention plan #57887).
For additional information from Fidelity about income replacement and staying on track for your retirement goals, view Where will my retirement income come from? and Retirement rules of the road. To learn more about the RSP, visit pensions.org.