New Year’s Saving Resolution #3: Save for Retirement

The following post comes from the America Saves Blog. Follow them on Twitter and Facebook.

January 30, 2013
By Katie Bryan, America Saves Communications Manager

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 that have made a saving plan for retirement and those that have not. 61% of Americans with a retirement plan said they were saving enough for retirement. For those who said they did not have a plan for retirement savings plan only 27% reported saving enough for retirement.

 

One way to automatically increase your retirement savings is to increase the amount you are saving towards retirement by 1% in 2013.

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?
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. Learn more.

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.

For more information:
Save for Retirement
Get Rich Slow: Maximizing Your Retirement in 2013
Thrift Savings Plan (TSP) Roth Option
Roth TSP Adds a Tool to Your Savings Kit

 

Tip of the Day

  • Written by Guest Blogger | May 1, 2014

    Check out the FREE "My Military & Money" app for servicemembers from @BBB and McGraw Hill Financial. More info at http://ow.ly/uMX9f

Saver Stories View all »

One Sailor's Course to Financial Freedom

Written by Super User | November 26, 2010

We all know its not easy to get out of debt once you in over your head. But it can be done with the sound advice and support that the Military Saves program offers. I am a testament to that. I was a recently divorced, single mother. Like many people I had credit card debt, a car loan, bad credit, and a low income job that never seemed to be enough to put food on the table.

Then I decided I'd had enough of living paycheck to paycheck and worrying about money all the time.

Read more...

On the Right Track to Build Wealth

Written by Super User | April 16, 2013

My name is Robina Wahl, and I am a military wife and a veteran. Although I am fairly new to the Military Saves Campaign, the message to “Build Wealth, Not Debt” reassured me that my husband and I were on the right track and doing the right things.

I have always been pretty responsible when it comes to saving and living within my means, but I was not prepared for the unpredictable employment lifestyle of being a Reservist and military spouse.

Read more...

Naval Battalion's Effort Yields Team Success

Written by Super User | November 26, 2010

Construction Battalion Five, DETAIL CHINHAE would like to share our campaign success story with you!

Currently we have 23 members on our Det, (all of whom have registered with militarysaves) and out of them 16 are planning for retirement by saving and investing money in the Federal Thrift Savings Plan.

Read more...