We have the top seven ways to save for retirement when you need a plan and some solid advice. The truth is, you will be putting yourself ahead of more than half of the US population as soon as you put a retirement plan into action.
It’s a startling statistic that less than 50% of people have yet to figure out what they need in retirement and this includes those getting close, within 10-20 years of hanging up the work gear. Know this, with people now living longer, the average person can expect to spend between 20-30 years in retirement and if this sounds like good news, without the financial means to support yourself, it could become a nightmare.
Retirement Choices
So what are the choices? Well, you could decide to continue working which many are doing right now and while some claim it gives them meaning, the truth is, many simply can’t afford to stop working.
The recent recession and real estate crash has affected stock investments and retirement home values which many were relying on to provide a good percentage of their wealth in their golden years. The following ten tips on saving for retirement can get you on the road to greater peace of mind. Remember, you just need to get it going instead of thinking about it.
7 Retirement Saving Tips
- Save and get into the habit of saving regularly. This might sound like standard advice but let’s be honest, how many people actually do it. It’s never too late to save so start saving for retirement starting today.
- Get solid advice from a financial expert who you trust or have been referred to by someone who has a strong retirement plan in place. Estimates suggest you’ll need between 60-80% of your current income in retirement to live comfortably without worrying about finances.
- Don’t be shy to take part in an employer contributed 401(K). There are many advantages and why more people don’t participate in these is a mystery. It benefits the amount of tax you pay and accumulation over time can result in a very tidy nest egg. And remember, there’s no limit to the amount you can contribute.
- Still on your employer, ask about their pension plan and whether it covers you. If it does great, learn more about it by asking your employer. If it doesn’t, ask why not and how you can become part of it. You’ll also need to know what happens to it if you decide to change employers.
- Diversifying your savings can be a huge boost to your bottom line. If you are inexperienced or know little of how retirement plans work look at your current plans with your employer. Find out how they work and when you are confident enough, commence your own. With more diversification, you lessen the risk of losing a huge chunk of your savings when the economy goes south.
- Don’t ever touch your savings. This is a major problem with many people who are tempted to grab what’s available to them and spend it short term. This is a long term plan and you need to stick with it.
- IRAs are a great option and you should consider them. Individual retirement accounts can start with low investment up to $5k a year and when you reach the age of fifty, you can increase the limit. Give them strong consideration.
Retirement Planning Advice
The tips listed here are basic yes, but unless you start at a basic level to understand how it works and what’s available, then the chances are you’ll do nothing.
Saving for retirement when you what somewhere to start is as easy as checking out this retirement calculator, and getting a ball park figure of what you will need in your golden years. Use the calculator and then get more information; from your employer and a financial advisor who is credible and qualified.
The bottom line is you need act on the information you gather but just get something going.