Are you saving enough for retirement? The U.S. Senate, which recently recognized National Save for Retirement Week, wants to make sure you are, or at least encourage you to save more.
The reality is, however, that most Americans have not saved enough to ensure a comfortable retirement. In fact, more than half of workers report that the total value of their household’s savings and investments, excluding the value of their primary home and any defined benefit plan (such as a traditional pension) is less than $25,000, according to the Employee Benefit Research Institute’s (EBRI) 2015 Retirement Confidence Survey.
While the amount someone will need in retirement varies, it’s clear from EBRI’s figures that many of us have a long way to go. So what can you do to help speed your progress toward your retirement goals? Consider these suggestions:
Take advantage of your employer-sponsored retirement plan.
More than two-thirds of workers aren’t taking advantage of employer-sponsored plans, such as a 401(k), according to a New School study based on the U.S. Census Current Population Survey. Many simply do not have access to a plan. If you are fortunate enough to work for a company that offers a 401(k) or something similar, take full advantage of it. At a minimum, contribute enough to earn your employer’s match, if one is offered. And every time your salary increases, boost your contributions. Employer-sponsored plans offer a range of investment options, plus tax-deferred earnings. And here’s another perk: Because you contribute pre-tax dollars to your plan, the more you put in, the lower your taxable income. In 2015, you can put in up to $18,000 to your 401(k), or $24,000 if you’re 50 or older.
Are you saving enough for retirement? The U.S. Senate, which recently recognized National Save for Retirement Week, wants to make sure you are, or at least encourage you to save more.
The reality is, however, that most Americans have not saved enough to ensure a comfortable retirement. In fact, more than half of workers report that the total value of their household’s savings and investments, excluding the value of their primary home and any defined benefit plan (such as a traditional pension) is less than $25,000, according to the Employee Benefit Research Institute’s (EBRI) 2015 Retirement Confidence Survey.
While the amount someone will need in retirement varies, it’s clear from EBRI’s figures that many of us have a long way to go. So what can you do to help speed your progress toward your retirement goals? Consider these suggestions:
Take advantage of your employer-sponsored retirement plan.
More than two-thirds of workers aren’t taking advantage of employer-sponsored plans, such as a 401(k), according to a New School study based on the U.S. Census Current Population Survey. Many simply do not have access to a plan. If you are fortunate enough to work for a company that offers a 401(k) or something similar, take full advantage of it. At a minimum, contribute enough to earn your employer’s match, if one is offered. And every time your salary increases, boost your contributions. Employer-sponsored plans offer a range of investment options, plus tax-deferred earnings. And here’s another perk: Because you contribute pre-tax dollars to your plan, the more you put in, the lower your taxable income. In 2015, you can put in up to $18,000 to your 401(k), or $24,000 if you’re 50 or older.
Click here to read the rest of this article.