Retirement Readiness - the City of Baltimore’s objective is to (1.) have the most retirement ready workforce of any municipality in the United States and that (2.) all employees are able to retire with dignity. The key for all employees when it comes to becoming retirement ready is to be focused on what are often referred to as the “four pillars of retirement readiness.” The four pillars are designed to simplify the process of planning and preparing for retirement. Much of the education content and materials that the RSP provides to employees is focused on these four pillars.
What are the four pillars of retirement readiness? They are:
- Retirement Age
The City defines normal retirement age as age 65 but the question of when to retire is an individual decision. What age do you plan to retire? Will you be ready? Setting a goal for retirement is the first step towards developing a plan to be retirement ready.
- Retirement Income
Most Americans should seek to have income at retirement that is equal to 80-to-100% of current income in order to maintain their current standard of living. Everybody’s situation is unique but becoming retirement ready entails thinking about your retirement savings as income. This is the money you will live on once you are no longer working.
- Savings Rate
Are you saving enough to retire with dignity? The research indicates that most Americans need to save at least 10% of income towards retirement. The City and RSP seek to make it simple for employees to be saving 10% of income by making supplemental contributions to the DCP.
- Asset Allocation
What is your investment strategy? Is your portfolio adequately diversified? The RSP and DCP have investment options that achieve this for you, including having a professionally managed investment portfolio (the Managed Account service).