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Savings and Retirement in Phoenix, AZ

It’s never too early to start saving for retirement. If you’re concerned about whether you will save enough before retirement age to retire comfortably, working with a professional on a retirement savings plan is the best way to jumpstart your short and long-term financial goals. At Sun Cities Financial Group, we have over 15 years of experience helping our community plan for savings and retirement in Phoenix, AZ. We work closely with each client to develop a highly individualized plan that obtains the highest yields with the lowest risks. Take a look at our tips for how to boost your retirement savings, and then call us to schedule a consultation.

Savings and Retirement in Phoenix, AZ

Tips for How to Boost Your Savings and Retirement

Developing a robust retirement plan is the best way to ensure you have the savings on hand for a peaceful, successful, and rewarding retirement when the time comes. However, there are no guarantees when it comes to investments. Working with a professional will increase your chances of a high-performing portfolio and help you develop strategies that minimize risk and maximize returns. Our team has extensive experience helping clients boost their savings and retirement plans in Arizona using these strategies.

Make a Plan & Estimate Retirement Savings

It may seem obvious, but the best way to jumpstart your retirement savings is to start early, estimate your retirement savings, and work with a professional to make a plan. The plan should take into account your short and long-term financial goals, age, assets and liabilities, family responsibilities, job and other sources of income, risk appetite, and retirement goals. Developing a plan will allow you to evaluate things you have never thought about and take stock of your strategies and options.

Profit From Catch-Up Contributions

Once you reach the age of 50, your annual contribution limits to IRA and 401(k) accounts increase. This means that as you get closer and closer to retirement age, you can put away more and more tax-deferred funds to plan for your future. As of 2023, anyone over 50 could add an extra $1,000 to their IRA and $7,500 to their 401(k).

Think About Converting to a Roth IRA

If you have money in a different type of account or a traditional 401(k), rolling the funds over to a Roth IRA can enhance your protection and allow you to grow tax-free income that you can use when you retire. Though you will need to pay taxes on the funds when you roll them over, they will grow tax-free in the account, and you will not need to pay taxes on funds that you withdraw.

Take Advantage of Low Tax Rates & Tax Exemptions

When planning for retirement, you can take advantage of the fact that many types of retirement savings accounts are not taxed. For instance, social security income is tax-exempt, and you can also maximize your tax-deferred contributions to your IRA and 401(k). Arizona also has one of the lowest retirement and state tax rates of any state. You can take advantage of its lower taxes to boost your retirement savings. Arizona is also very lax about its inheritance and estate tax regulations. As you get closer to retirement age, plan on contributing more to IRA and 401(k) accounts for their tax advantages.

IRAs Are Protected From Litigation

Keeping your retirement funds in an IRA ensures they are protected from litigation. Whether a business deal goes south or you owe money to a creditor, you can make sure that others cannot access your retirement funds in a civil lawsuit or collection proceedings.

Review Your Alternatives for Annuities

If you have already maximized your 401(k) and IRA contribution amounts, you may be eligible for an annuity. An annuity is a type of insurance purchased with a lump sum or in a series of payments. A professional financial advisor can guide you towards annuities that allow you to access market upside while guaranteeing a retirement income.

FAQs About Retirement Savings Plans

What is the average retirement savings by age?

The average retirement savings by age group:

35-44 – $141-520

45-54 – $313-220

55-64 – $537-560

65-74 – $609-230.

What is the retirement savings contribution credit?

The retirement savings contribution credit or the ‘saver’s credit’ is a single tax credit of $1,000 or a joint tax credit of $2,000 for low- to mid-income tax filers who are contributing to a retirement account. You can take this tax credit if you have made eligible contributions to your IRA or employer-sponsored retirement plan in the relevant tax year.

How long will my retirement savings last?

The answer to this depends on how wisely you invest, how much accessible income you have during retirement, how much you spend, what lifestyle you want to maintain during retirement, and whether you are responsible for anyone else’s care. If you have invested 50% of your retirement funds in stocks and the rest in bonds, you should be able to secure a steady retirement income for 30 years.

When will I be able to retire?

This also depends on how well you have planned for retirement, your assets and liabilities, who is dependent on you for care, and what type of lifestyle you lead pre- and post-retirement. In America, the full retirement age is 66; however, some people can retire early, and others don’t have the funds to retire for years after the retirement age.

My goal is to retire shortly. How should I begin?

You should make an appointment with one of our certified financial advisors to assess the health of your retirement savings and offer professional guidance.

Can I purchase additional service credits?

Yes. Purchasing additional service credits can increase your monthly benefit and allow you to retire earlier.

Schedule a Consultation to Estimate Retirement Savings

If you have more questions about retirement savings plans or want to estimate your retirement savings in Phoenix, AZ, our experienced financial advisors at Sun Cities Financial Group can help. We have over 15 years of experience in the industry and have earned a reputation for excellence through our honesty and integrity. Call us today or contact us online to schedule an initial consultation for savings and retirement planning.