As you enter your 50s and 60s, retirement planning takes center stage. For San Antonio’s faith-based community, reflecting on financial goals and connecting them with deeply held values is essential.
Whether you’re planning to leave the workforce soon or still have a few more years to go, preparing now can help you move into this next chapter with confidence and purpose.
At PAX Financial Group, our San Antonio team of financial advisors brings over 100 years of combined experience to individuals and families seeking financial strategies rooted in their faith.
This blog explores unique financial considerations for those in their 50s and 60s, offering practical steps to prepare for this significant milestone.
Understanding the Emotional and Financial Shifts
Retirement is a major life event that can bring a mix of emotions. For many, leaving the workforce after decades of building a career or business can feel exciting and unsettling. Retirement isn’t always the carefree chapter many imagine, as adjusting to changes in routine and finances can bring challenges. These shifts, however, are completely normal, and with the right preparation, the transition can be much smoother.
Retirement offers opportunities to volunteer, deepen connections with loved ones, explore hobbies, and travel—all of which can make this phase of life fulfilling and meaningful. Moving from a steady paycheck to a more fixed income is a significant adjustment from a financial perspective, but many find it manageable with careful planning.
A PAX San Antonio financial advisor can offer recommendations and solutions to help you approach retirement with greater stability.
Key Steps for Financial Readiness
Preparing financially for retirement means understanding the costs ahead, knowing where you stand today, and planning for the unexpected. Here are some actionable steps for financial readiness.
Create a Realistic Post-Retirement Budget
Estimating future retirement costs is challenging. Start by factoring in core expenses and personal priorities that may shape your spending. Consider the following:
- Housing costs: Will you downsize, relocate, or maintain your current home? Are you considering purchasing a second home or moving closer to family?
- Healthcare: Include Medicare and Medigap premiums, out-of-pocket expenses, and potential long-term care needs.
- Daily living expenses: Account for utilities, groceries, transportation, and leisure activities.
- Charitable donations: When giving back financially is a priority, estimate the amount you plan to contribute.
- Travel and hobbies: Plan for activities like visiting family, exploring new places, or pursuing long-delayed interests like art, music, or fitness.
If you plan to retire in Texas, consider the state’s cost of living. While Texas offers no state income tax, property taxes and healthcare expenses may vary depending on your location and lifestyle choices. Reviewing these factors in detail will help you build a realistic budget.
Evaluate Your Current Savings
Now that you’ve estimated your retirement expenses, it’s time to evaluate your savings and retirement income.
Start by assessing your Social Security benefits and consider the timing based on your needs, health and spousal benefits. If you have a company pension, determine when to start taking it and weigh the pros and cons of a lump sum option.
Next, review your existing savings, including IRAs, 401(k)s, and brokerage accounts. Ask yourself:
- Are you contributing enough to get the company match or maximizing your employer-sponsored plan?
- If you’re self-employed, are you contributing to a SEP IRA or Solo 401(k)?
- Have you thought about opening a Roth IRA or converting a traditional IRA to a Roth?
For those 50 and older, catch-up contributions can boost savings, and ages 60 to 63 have an additional option for employer-sponsored plans.
Compare your savings to your goals and expected expenses. Working with PAX’s San Antonio financial advisors can help determine if you’re on the right path.
Adjust and Diversify Investments
As retirement approaches, it’s wise to reassess your investment strategy. While aggressive growth investing is often the priority in earlier years, pre-retirees may need to consider reducing risk by diversifying a portion of their assets into more stable, conservative options. At the same time, retaining some growth-focused investments can help your portfolio stay ahead of inflation.
Everyone has a unique risk tolerance when it comes to investing. Regularly reviewing and adjusting your investment strategy is vital to financial preparedness.
Plan for the Unexpected
An emergency fund with three to six months’ expenses in a liquid, interest-bearing account is a smart strategy. This fund can help cover unexpected costs, such as medical emergencies or home repairs, without the need to take on debt or draw from your retirement savings.
Faith-Based Considerations
For faith-based families, retirement planning in San Antonio isn’t solely about finances—it’s also about living according to your values. Aligning your financial goals with Judeo-Christian principles can bring a deeper sense of purpose and fulfillment during this transition.
One way to reflect your faith in your financial strategy is by incorporating charitable giving into your plan. Donor-advised funds (DAFs), charitable trusts, or regular tithing can be effective tools for stewardship, allowing you to support causes that matter most to you. These strategies contribute to your community and offer potential tax advantages.
Additionally, consider how your investments reflect your values. Biblically Responsible Investing (BRI) can help position your portfolio to match your faith, focusing on companies and industries that resonate with your principles.
Discussing these options with a PAX San Antonio financial advisor can provide clarity and guidance as you refine your approach.
PAX Financial Group for Retirement Planning in San Antonio
Embracing the next chapter of life requires more than financial readiness—it’s about finding confidence in your decisions and staying true to your values.
At PAX Financial Group, we specialize in retirement planning in San Antonio, helping faith-based families navigate this important transition.
Our team understands the unique needs of individuals and families who want their financial strategies to reflect their faith. With personalized advice and a commitment to Judeo-Christian principles, we aim to help you retire in Texas with confidence.
The transition to retirement is a significant milestone, but you don’t have to manage it alone.
Contact us today to discuss your goals, values, and financial needs. Let us help you create a plan that supports your vision for retirement and reflects what matters most to you.
