5 retirement habits to consider for summer

Only 23% of Americans have checked on their retirement savings progress in the past 12 months, but avoiding your retirement accounts could cause you to miss opportunities to grow your savings.¹ Voya recommends staying engaged with your retirement accounts and provides resources and tools to help along the way. Consider these five retirement habits for mid-year check-in.

1. Check the IRS limits on contributions

Each year, the IRS can adjust the limits that individuals are allowed to contribute to their retirement accounts. This decision is based on several factors, including the cost of living and recent limit changes.

Before checking the IRS limits, make sure you know:

1. Your account type — this can be something like a 401(k), 403(b), 415 or IRA (Individual Retirement Account).
2. If you are eligible for “catch up contributions” — in some cases, this doesn’t apply until you are at least age 50, but different account types have different rules.
3. How much you contribute — include all the dollars that go into your account, whether they’re deducted from your paycheck or you deposit them yourself, and whether they’re pre-tax or post-tax.

Visit Voya’s IRS Limits resource page and compare your contribution to the IRS limits. This can be a good retirement habit because it gives you concrete numbers that you can compare against — even if you’re not quite contributing that much (and that’s ok).

Pro tip: Have an HSA? Check the IRS limits to see if you can maximize pre-tax savings there too.

2. Revisit your employer’s retirement plan 

When you started your current job or jobs, you likely received a lot of information about the benefits package, including everything from paid time off to employee discounts and retirement.

Revisit your retirement plan and look for language like “matching retirement contributions” or “employer match.” Not all employers offer this, but you should take advantage if yours does.

An employer match is essentially extra money your employer adds to your retirement account. When you contribute, they contribute too — helping your savings grow faster. Making sure you’re contributing enough to receive the full match is one of the easiest ways to boost your long-term retirement balance.

3. Add up your current spending to better estimate for retirement

Do you have a sense of your true monthly expenses? Determine your spending across all your accounts and use it to estimate how much you’ll need in 30, 40 — even 60 years.  

Voya’s myOrangeMoney® calculator shows estimates on your future retirement savings and helps you see if you have gaps between what you’re saving today and what you’ll need down the road.

• Have a Voya account? Log in to see your personal myOrangeMoney.
• Not a Voya customer? Try our online myOrangeMoney calculator.

4. Double-check your investment mix

Is your current plan still aligned with the future you have in mind? Life changes, and so do your goals. Shifts in your family, health or even your hobbies can all shape what your retirement will look like. It may be worth revisiting your plan to make sure it still reflects what matters to you.

For example, you might learn how to sail and decide that retirement at 50 for a worldwide sailing trip is your new goal. If that happens, it will likely require some adjustments to your retirement investment lineup.

So, while you’re practicing these retirement habits, take a moment to ensure your money is invested in a way that still aligns with your goals. Ask yourself:

• How much will I need to live the life I want?
• What changes do I need to make to my investments to give myself a good chance of reaching my goals?
• Am I still targeting the same retirement date as my Target Date Fund (TDF)?
• Am I paying more fees than I expected?

5. Lean on a professional, if you prefer

Just like cooking, home decor or car repairs, sometimes you’d rather hire a professional. And when it comes to retirement, it can really make a difference. In fact, employees who work with a financial professional are about 1.6x more likely to report increased confidence in meeting their retirement goals than those without one.²

 A financial professional can help you stay on track for retirement no matter where your financial journey takes you.

To get a financial professional in your corner:

1. Log in to your Voya account.
2. On the left side, click on the balance of your Voya Savings Account.
3. Click the blue “Go to Account” button.
4. Then, click on “Get Investment Advice” in the top navigation for your personalized advice.

Whether you’re checking your contributions, revisiting your plan or getting guidance from a professional, building these recommended retirement habits into your routine can help you stay on track and feel more confident about what’s ahead.