Saving for retirement can be stressful, no matter what stage of life you’re in. Dianna Knudsen of Mason’s Edward Jones has spent more than 10 years helping people invest wisely and plan for their retirement goals.
“Part of my relationship process includes creating and monitoring short and long-term goals for my clients,” Dianna explains. “As their lives change, I'm able to meet with them without limits to modify their goals along the way.”
We sat down for a chat with Dianna to gain insights into recent law changes that may help you generate more retirement savings.
Why is it important to save for retirement and when should people start saving?
As companies modify their retirement benefits, the responsibility to save has continued to shift to the individual. This means we are in the driver's seat to save for the bulk of our retirement. I recommend investors start saving for retirement when they begin working.
How does someone determine the right age for their retirement?
There isn't a perfect age to retire, just as there's not a magical investment balance that's required to retire. The best way to determine the age for retirement is to create a plan and establish goals. I recommend meeting with a Certified Financial Planner® who can assist with creating a personalized plan.
Can you shed some light on the Social Security Fairness Act signed into law in early January? How does it affect retired public employees?
The Social Security Fairness Act eliminates the Windfall Elimination Provision and Government Pension Offset that were signed into law in 1983. These provisions reduced, and in some cases eliminated, social security benefits to over 3.2 million people who receive a pension that wasn't covered by Social Security. Although these people didn't pay into Social Security in their pension positions, many still paid into Social Security from other jobs earning the 40 credits required for Social Security eligibility. If a qualifying individual never applied for retirement, spousal or surviving spousal benefits due to these provisions, they need to file an application. Retirement and spousal benefits can be applied for online, but survivor benefits require meeting with the Social Security Administration.
Are there any other new laws or changes to laws that readers may not be aware of that can affect how they save for retirement?
Many investors think the maximum amount they can contribute to their company retirement plan is the amount necessary to get their full employer match, but that's not the case. The current contribution limit for 401k, 403b and 457 is $23,500. They also offer a catch-up salary deferral for those aged 50-59 and 64 and up of $7,500. In 2025, they modified the catch-up salary deferral for workers aged 60-63 to $11,250. The current contribution limit for traditional and Roth IRAs is $7,000 with a $1,000 catch-up for investors age 50 and older.
To learn more about saving for retirement, contact Dianna at 513.398.2699 or visit EdwardJones.com/us-en/Financial-Advisor/Dianna-Knudsen.
"The best way to determine the age for retirement is to create a plan and establish goals."