Six ways to protect your savings before you retire

(InvestigateTV) — For those hoping to retire in the next few years, a few practical steps now can make a meaningful difference for both savings and peace of mind later. Cherry Dale, vice president of financial education at Virginia Credit Union, said it is never too early to start planning.

Dale recommends starting with a review of workplace benefits. If an employer offers a 401(k) match, she said it is important to make sure that match is being fully used.

Dale also recommends maximizing contributions to a health savings account, since those funds roll over year to year and can be invested, growing tax-free for future medical expenses.

Dale said reviewing Social Security benefits regularly can help with long-term financial planning.

“You can go to the Social Security website, create an account and log in each month, once a year, and check out what your benefit might be,” Dale said. “It will project that out for you. And the more money you make, it will adjust along the way. So when you’re doing your overall financial planning for retirement, you can look in real time at where you are with your Social Security amount each month.”

Dale said awareness of scams becomes increasingly important with age, since older adults are more frequently targeted. She recommends being skeptical of unsolicited contact and verifying information before acting on it.

Dale recommends calculating how much income will be available each month in retirement, while also accounting for inflation.

“You absolutely need to factor in inflation,” Dale said. “So what your dollar buys now might not buy later. And understanding that, because your income might not — probably won’t — go up.”

Dale’s final recommendation is meeting with a financial planner. She said a financial institution may be able to connect retirees with someone who can review a retirement portfolio and suggest adjustments.