Financial Roadmaps for Empty Nesters
Find savings account options from Citizens Bank that match your goals at this stage in life
The kids have moved out and are taking care of their own finances and paying down their own debts. You're getting closer to retirement and planning for life on a fixed income. At this stage in your life, your savings goals are bound to change. This is the perfect time to re-evaluate your plans and the savings account vehicles you're using to reach them. Take stock of where your finances are currently, what you want to do in the future and when you need to do it, then create a financial roadmap for the rest of your life, focusing on your goals as an empty nester.
Determine your savings goals and timeline on your financial roadmap
What are your goals in life now that the kids are gone? Do you want to prepare for everyday expenses in retirement? Pay off your mortgage? Go on vacation or buy a vacation property? Whether you're planning for future medical expenses, downsizing the house, buying a classic car, or want to set aside savings for your future grandchildren, meeting these goals takes time and planning.
As you create your budget for your years as an empty nester and into retirement, it's important to set aside more than you think you'll need. Your expenses will change at this point in your life, some will go up and some down. Having around 80 percent of your current income set aside for retirement years can help you to be ready for changing costs on a fixed income. A good rule of thumb is to create a budget based on anticipated needs and then work to save twice that. Outline when you want to meet each goal and how much you need to save to meet that goal on time. Our GoalTrack Savings® program can help you determine what you need to save with a specific interest rate to reach your goal on time.
Choose the savings accounts that match the goals on your financial roadmap
High-interest savings accounts like money markets will help you earn more, faster, making them beneficial when you're saving for big purchases. Certificates of deposit (CDs) earn more while encouraging you to leave savings untouched for a certain period of time — a good tool for retirement or setting aside funds for the grandkids. Standard savings accounts give you easy access to funds whenever you want it, whether for future medical expenses, vacations or everyday budgeting. And specialized savings accounts like CollegeSaver®or our IRA Savings Plan help you plan for specific goals for you or your family.
To create a financial roadmap, use a spreadsheet tool to track your income and budget, your contributions toward your goals and the interest you'll earn on the savings account. Be sure to consider any future IRA distributions and the adjusted income and budget you'll have in retirement. You'll also want to take a look at your other investment vehicles to determine how best to grow your funds and when you may want to move them into an FDIC insured account like a money market.
Open savings accounts to meet your goals with Citizens Bank
The upcoming years are your time to do what you will, from traveling the globe to learning new hobbies. The savings account options at Citizens Bank provide you with the flexibility you need to meet your various savings goals. From money market accounts to IRA certificates of deposit, maintaining a diverse savings portfolio will help you prepare for the future and meet the new goals along your financial roadmap. To learn more about high-interest savings account options from Citizens Bank, speak with a Banker who will help you find the right account, or accounts, to meet your goals.