Northwestern Mutual: 4 Essential Steps 20 Years Before Retirement

NEW YORK, NY / ACCESSWIRE / June 10, 2024 / Retirement planning is crucial even for those in their forties, as early decisions can significantly influence financial security and lifestyle in later years. Northwestern Mutual outlines four key steps for professionals to follow two decades before retirement.

Firstly, reassessing debt is vital. Taking stock of all debts—including credit cards, student loans, and mortgages—helps in creating a plan to eliminate high-interest debts first. This approach can free up more money for retirement savings and ease the transition to retirement.

Updating one's budget regularly is also important, especially after major financial milestones. By revisiting their budget, professionals can make necessary adjustments to stay aligned with their retirement goals, addressing lifestyle creep and identifying areas to save more.

Envisioning retired life is another essential step. Setting concrete goals for retirement activities, whether traveling or pursuing hobbies, helps in understanding future expenses and aligning financial decisions with retirement dreams.

Finally, reevaluating life insurance coverage 20 years before retirement ensures that it meets current needs, accounting for changes like an expanding family or increased salary. Considering permanent policies guarantees lifelong protection and a secure payout for loved ones.