Previously, there was the antiquated notion that when you hit 65 you are ready to retire; that was the number people had in their sights while planning. Nowadays, a comfortable retirement isn’t set at a specific age. Some people aim to retire early, or want to work longer to have a sense of purpose. Without age being a set factor, retirement has become a mindset and the consideration of planning and lifestyle rather than a number to reach. Let’s shift your current mindset from “retirement someday” to “ retirement readiness today!”
Retirement is no longer a one-size-fits-all milestone marked by turning 65 and a pension plan. Today, it’s far more personal and more flexible, with no average retirement age. For some, it might mean stepping away from a 9–5 to start a passion project. For others, it could mean shifting to part-time work, consulting, or even traveling the world.
That’s why retirement planning should start with mindset, not age. It’s about how you want to live, not just when you stop working.
Retirement isn't the end, it's the start of a new chapter where you decide how to spend your time. The goal isn't to stop working entirely, but to gain the freedom to choose if, how, and when you work.
This mindset shift invites a different approach: one rooted in lifestyle design, financial readiness, and preparing emotionally. “Retirement” can mean becoming work-optional and reclaiming your time and aligning it with what matters most.
Beyond finances, emotional readiness is just as vital. After years of routine and career identity, open-ended freedom can feel both liberating and disorienting.
Ask yourself: What kind of life do I want when work is no longer required? What brings me joy or fulfillment? Clarifying your purpose can guide the plan that supports it.
When you begin thinking about retirement early, whether you're 25 or 45, you give yourself options. Time becomes your greatest asset. Small steps taken today can dramatically shape your future flexibility. It’s not about locking in a date; it’s about building the foundation to support whatever retirement means to you.
Think of it less like an age you hit and more like a readiness you build. When you're mentally and financially prepared, you get to define what retirement looks like on your terms.
Use questions to guide how you think through your retirement planning and reflect on your goals for that phase of life. We’ve compiled a list of questions to get you started. Before you dive into numbers, get clear on what you want retirement to look and feel like. We've compiled a list of questions to help you get started.
Financial security is key to retirement readiness, but it starts with awareness. Know where you stand, where you’re headed, and what it will take to get there.
Retirement might not mean a full stop. It could be a career pivot or lifestyle redesign. Consider how your work and daily life might shift and how you’ll transition emotionally and mentally.
You don’t have to do this alone. Lean on the right tools, professionals, and financial partners to help you stay on track and make confident decisions.
When you start planning early, or even if you just start today, you create an opportunity for your money to grow. One way to help your money grow is to take advantage of compounding interest. Compounding interest is the process of earning interest on both the initial principal and the accumulated interest from previous periods. It's essentially "interest on interest” for the sum of money you have in a savings account. This leads to faster growth compared to simple interest, where interest is only calculated on the original principal. Compounding can create a snowball effect, as the original investments plus the income earned from those investments grow together.
For example, if you invest $5,000 at an average annual return of 7%, it will grow to about $38,000 in 30 years without any additional contributions, just from the power of compounding! Think of compounding like planting a tree: the earlier you plant it, the more time it has to grow tall and strong. Waiting too long limits how much shade, or financial security, it can eventually provide.
Many people delay getting started because they think they need a large sum of money to begin. But in reality, consistency is far more important than size. Even small, regular contributions can grow substantially over time. It is never too late to start making progress towards your retirement goals, and every small step you make now matters for the future. Planning early can be essential for following through on the vision you have been dreaming about.
Retirement is about reaching a state of financial independence where you no longer rely on a paycheck to support your lifestyle. But how do you know when you’ve arrived? It starts with defining your retirement goal.
Your retirement goal isn’t just a number in your bank account—it’s about how much you’ll need annually to cover the life you want to live. This includes your annual expenses, such as housing, food, healthcare, travel, and hobbies. A good starting point is to aim to replace about 70–80% of your pre-retirement income, although this number may vary depending on your lifestyle and debt levels.
For example, if your current annual salary is $80,000, you might target $56,000–$64,000 in yearly income during retirement. From there, you can calculate the total savings you'll need to generate that income, factoring in Social Security, pensions, investment returns, and other income sources.
By understanding these factors now, you can reverse-engineer your financial strategy and start building toward that freedom today. Whether your goal is to retire early, transition into part-time work, or simply have more choices later, the key is aligning your money with your desired lifestyle.
Remember: financial independence isn’t about being rich, it’s about having enough to live life on your terms.
Here at Leaders Credit Union, we know the value of planning ahead for retirement based on your financial goals. We can offer you an Individual Retirement Account (IRA) and personalized planning services with our Financial Champions. Saving for retirement should be a priority. Our IRA term share certificates pay high dividends to help your money grow, and we are invested in your success long-term.
If you just take one small step today, it could make all the difference later. Consider scheduling time with one of our Financial Champions, or exploring our retirement account features (definitely check out our retirement calculator!) Interested in investing but not sure where to start? Try Investing 101: A Guide to Growing Your Wealth.
Leaders is federally insured by the NCUA.