Do you know how much you can expect from Social Security in retirement – or from any pension plan you have? Or how much you need to save to make up the shortfall in your desired retirement income?

Are you up-to-date on all the tax-favored retirement savings options? And are your retirement investments adequately diversified?

Whether your retirement is far off or just around the corner, now’s the time to get answers to all these questions and to put your retirement plan on track. Here’s how to get started:

Estimate your retirement income and expenses. The standard advice used to be that for each year in retirement you’d need about 70% to 80% of your pre-retirement expenses. But with longer life expectancies and more active retirement lifestyles, this traditional formula may leave you short. So take the time to make a more accurate estimate.

Make the most of your employer-sponsored retirement plan. If you have access to a tax-favored employer-sponsored retirement plan, such as a 401(k), a 403(b) plan, or a 457 governmental plan, make every effort to contribute the maximum allowed.

With these plans you don’t have to pay income taxes on the amount you contribute until you make withdrawals, and your earnings grow on a tax-deferred basis.

Contribute to an IRA. Boost your retirement savings by starting an IRA or adding to your existing one. With a Roth IRA, if you’re eligible to contribute and if you meet the specified withdrawal conditions, you can withdraw your earnings free from federal income tax.

With a Traditional IRA, you don’t have to pay income taxes on your earnings until withdrawal, and if you’re eligible, you can make tax-deductible contributions.

Invest wisely. Evaluate your current investment mix and set your target asset allocation plan. Dividing your money among the different types of assets is a time-tested way to help reduce risk, as well as a way to smooth out your portfolio’s ups and downs.

For more information about retirement planning and personalized assistance, please contact Chad A. Eyre or Steve M. Benzing, the MEMBERS Financial Services Representatives serving the members of Dow Chemical Employees’ Credit Union at (800) 835-7794 or (989) 835-7794 extension 4572.

1385-P1819F2