4 Steps to Retirement Planning Success | AbbyBank’s Helpful Guide

Step 1: Start with a Clear Retirement Plan

It may seem obvious, but the first step in retirement planning is setting clear and realistic goals for your future. When thinking about your retirement, ask yourself:

When do I want to retire?
What kind of lifestyle do I want in retirement?
How much annual income will I need to support that lifestyle?

That last question can be tricky, and you might not have an answer for it off the top of your head. That’s where tools like our Retirement Calculators come in. The earlier you begin saving, the more time your money has to grow—and compound interest can make a big difference over time.

Step 2: Maximize Your Retirement Accounts

One of the most effective ways to save for retirement is through an Individual Retirement Account (IRA). At AbbyBank, we offer several secure, interest-earning options that can be set up as either a Traditional or Roth IRA, depending on your tax preferences and retirement goals.

A Traditional IRA allows you to contribute pre-tax income now and pay taxes later when you withdraw in retirement. This is ideal if you expect to be in a lower tax bracket later.
A Roth IRA allows you to contribute after-tax dollars so qualified withdrawals in retirement are completely tax-free. This is ideal if you expect to be in a higher tax bracket later.

IRA Certificates of Deposit (IRA CDs)

An IRA CD allows you to earn a guaranteed rate of return over a fixed term. It’s an ideal option if you want predictable, low-risk growth for your retirement savings.

24-Month IRA Savings

A flexible savings option with a 24-month term and a fixed interest rate that allows for regular contributions and steady growth.

Variable Rate IRAs

This IRA gives you the flexibility to contribute when it works best for you, with no set term and a rate that may adjust over time—ideal for those wanting regular contributions without locking in a rate.

Coverdell Education Savings Account

If supporting a child’s or grandchild’s education is part of your retirement plan, a Coverdell Education Savings Account (ESA) – also called an Education IRA – offers tax advantages on savings that are specifically for covering qualified education costs.

One thing that’s important to note regardless of which IRA you choose is the contribution limit – that is the maximum amount you can contribute to your account annually. This number changes, but for 2025, the IRA contribution limit is $7,000 ($8,000 if you are 50 or older). Coverdell ESA contributions are limited to $2,000 per year per beneficiary and are subject to income eligibility requirements.

Step 3: Diversify Your Savings

Even if you're already saving through an IRA, it’s smart to consider additional savings options that complement your long-term plan. Diversifying how you save can help you better manage your financial goals and timelines.

AbbyBank also offers Certificates of Deposit (CDs) — a secure way to grow your savings with a fixed interest rate over a set term. They’re perfect for setting aside money you don’t need right away but want to earn more than a standard savings account typically offers.

Step 4: Meet with Our Personal Bankers (And A Financial Advisor)

Everyone’s retirement journey looks a little different. Our Personal Bankers are here to help you understand the account options available at AbbyBank and guide you through opening the right ones for your needs.

For more in-depth financial planning or investment advice, we recommend speaking with a licensed financial advisor who can provide guidance tailored to your full financial situation.