Tips for Making the Most of My Retirement Plan^®

Once you select a retirement savings plan, start saving today. This could mean starting to contribute to your 401(k) with your employer, opening an Individual Retirement Account (IRA) and setting up automatic monthly transfers, or stepping up your savings by increasing your monthly contribution to an existing retirement account. Not sure you can start today? Read about the cost of waiting.

After you select a retirement savings plan, we provide a list of recommended action items that are specific to your situation. Take a few minutes to review your recommended next steps and take action today. If you saved your plan, you can access your next steps at any time by signing on at My Retirement Plan.

People who commit to saving toward retirement each month are much more likely to achieve their retirement goals. Having three to six months of emergency savings will help you stay on track, even when financial challenges come your way.

Now that you’ve selected a retirement savings plan, two free online tools can help you find money in your budget to save for retirement.

• My Spending Report with Budget Watch helps you create a budget, automatically tracks your Wells Fargo deposits, and categorizes your Wells Fargo debit card, credit card, and online Bill Pay spending into familiar categories.

Sign up now or use the public version of My Retirement Plan. With the public version, you cannot save your plan online, but you can access the tool’s other features.

As your financial situation changes, so should your retirement savings plan. For example, you should update your plan if your income changes, your marital status changes, or you receive an inheritance.

To help ensure you don’t outlive your retirement savings, consider making the adjustments below to create a more conservative savings plan. You’ll need to save a little more now, but may thank yourself later.

• Lower your retirement age in the My Information section to give yourself a buffer in case you end up retiring earlier than expected due to job loss or health reasons.
• Select a longer life expectancy under Calculator Assumptions to help guard against outliving your savings.
• Increase your income replacement rate under Calculator Assumptions to help live life in retirement on your own terms.
• Choose a conservative investment style under Calculator Assumption, particularly if you have a more risk-averse approach to investing.
• Increase the expected inflation rate under Calculator Assumptions to help protect your savings against higher-than-average inflation.

The projected amount of monthly income you’ll need in retirement is adjusted for estimated changes in your income between now and retirement, so if you are many years from retirement, it could be significantly more than what you currently spend each month. On the other hand, if your current income is significantly above what you currently spend each month (this generally applies to people with high incomes), you may want to lower your income replacement rate on the Calculator Assumptions tab.

While some people envision a work-free retirement, others choose to gradually transition into retirement by working part time or beginning a second career. If you think you will earn income while in retirement, remember to enter this amount on the Future Income tab.

Market volatility plays a critical role in the long-term success of your plan. Saving more than the recommended monthly amount will cushion your retirement savings and move you closer toward meeting your total saving goal.