1: One of the hardest parts about saving for retirement is that it often seems like a long time away, and we have more immediate needs and wants for our money
2: Employer-sponsored retirement plans have several advantages as a retirement saving option.
3: Find EASY ways to save that fit into your life so that you can save for retirement.
4: The key to success is to start. Start with small amounts and know that you can increase the amounts later.
Save for Retirement
The kids are back in school and now it’s time to focus on grown-up things … like saving for retirement! Take time to focus on your future needs and plan for your retirement.
Why is it hard for people to save for retirement?
One of the hardest parts about saving for retirement is that it often seems like a long time away, and we have more immediate needs and wants for our money. It can also be hard to believe that we can save enough to make a difference, but we can!
How can people get started with saving for retirement?
Explore your options at your workplace. Talk to someone in human resources and find out if your workplace has an employer sponsored retirement plan.
Employer-sponsored retirement plans have several advantages:
· They offer tax-advantaged savings;
· It’s easy to automatically deposit money from each paycheck into the plan;
· Some employers will match the amount you put into the savings plan. If your employer matches a dollar saved with a dollar match, that’s a 100% return. You will not beat that return anywhere.
If you don’t have an employer-sponsored retirement plan, exploring saving with an individual or self-employed retirement plan, like an IRA or Roth IRA.
What are other options for people to start building up savings?
Find EASY ways to save. For example:
· Pay yourself. Think of savings as a bill to be paid regularly.
· Use bonus money. For example, divide your tax return dollars and deposit some into your checking account and some to savings.
· Pay installments to yourself. Once you pay off an installment loan like a car loan, make “payments” to your savings account.
The key to success is to start. Start with small amounts and know that you can increase the amounts later. Find a method that works for you and begin saving for retirement.