The scary truth

By Shelly Ford via cobizmag.com  Article

The Scary Truth About How Much Americans Have Saved for Retirement

“Particularly concerning is the average retirement savings of adults in their 40s. Ideally, by that age, most people have had about 20 years of earned wages under their belt and should have a nice chunk of retirement savings put away. However, the median retirement savings of U.S. households headed by someone aged 44 to 49 is just $6,200. …

A good rule of thumb is to have the equivalent of your salary saved by age 30 and to have 10 times your final salary in savings if you want to retire by age 67. …

Here are some … tips:

  • SAVE MORE NOW

Consider setting up automatic payments to your savings account to ensure you are actively saving no matter the amount. Even if all you have is a little money to put away each month, that money can add up to a significant amount in the future.

  • MAXIMIZE RETIREMENT SAVING

If you have a retirement plan at work, always sign up for your employer contribution to save as much as possible. Some employers match at least a part, if not all, of their employees’ retirement account contributions.

  • IF POSSIBLE, PAY OFF DEBT

Based on your budget and financial goals, determine how much additional money you can realistically put toward your debt each month. However, don’t sacrifice other financial goals like saving for your child’s college education or purchasing a home just to be debt-free early. …

  • DON’T WITHDRAW EARLY

There are penalties on funds that are withdrawn early. Avoid paying these fees by refraining from accessing your retirement account until you are at least 59-and-a-half years old.

  • CONSIDER HEALTH-CARE COSTS

Health-care premiums and the associated costs of care are often forgotten components of retirement plans that can chip away your savings. It can be difficult to predict the future, but reviewing your family’s medical history and your own personal health can help assess how much care you may need.

  • MONITOR SHIFTING LANDSCAPES

Diverging federal and state policies can raise uncertainty when it comes to managing your wealth.”

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