New Year's Saving Resolution #3: Save for Retirement
By Katie Bryan, America Saves Communications Director
Retirement savings is a top priority for many savers. There are striking differences between the savings progress of those with and without a retirement savings plan. You fall into one of two groups: those who have made a savings plan for retirement and those who have not.
Sixty-one percent of Americans with a retirement plan said they were saving enough for retirement. Of those Americans who said they did not have a plan for retirement savings, only 27 percent reported saving enough for retirement.
One way to automatically increase your retirement savings is to increase the amount you are saving towards retirement by one percent in 2015.
There are two different places you can save for retirement:
Save at Work
Many employers offer ways to save for retirement. If you are already saving for retirement through your work, upping your retirement contribution is easy. Just visit your HR department and let them know you want to increase your retirement contribution. Your employer may also offer matching funds for contributing to a 401(k) or other retirement plan. Make sure you are putting in enough to receive the full match – or you are missing out on free money. The military version of the 401(k) is the Thrift Savings Plan, which now has both Roth and Traditional options. You can visit www.TSP.gov for information on increasing your contribution percentage.
Are fees eating away at your retirement savings? Remember, no matter how generous your employer is in helping you save for the future, your retirement plan isn’t free – you’re paying for it – and as a consumer you’re entitled to know what you’re being charged.
Save Outside of Work
If your employer doesn’t offer a retirement plan you can still save for retirement, and get some tax benefits in the process, by putting money in an Individual Retirement Account (IRA). Many IRA accounts require you to have at least $1,000 to open an account. If you don’t have $1,000 handy, automate your savings by putting $50 a paycheck into a savings account. Then once you’ve saved the minimum amount required, you can open an IRA.
- Written by Guest Blogger
- Category: Blog
- Published: 08 January 2015