Did you know that many experts believe you'll need close to 80% of your pre-retirement income to maintain your current standard of living? There are steps to help make the process of saving for retirement more manageable …
Start planning today:
Step 1 – Develop your goal by figuring out the monthly spending amount you'll likely need in retirement
Step 2 – List the different sources of income that you know you'll have
Step 3 – Figure out how much more you'll need to save to reach your goal
(You can use the “Retirement Calculator” for help figuring out Step 3.)
Don’t forget to answer the following questions:
- Is a pension available to you? How much will you possibly receive each month?
- Can you contribute to an employer sponsored retirement savings plan? How much do you think you'll accumulate at retirement age?
- Will you contribute to a tax-deferred savings plan like an IRA? How much do you think you’ll accumulate at retirement age?
- How much do you think any Social Security benefits will be?
(You can use the benefit calculators at Social Security Online to come up with an estimate of your benefits.)
Here are a few quick tips to help you get started early:
Tip 1 – The longer you can save, the more you can save
Tip 2 – Consider contributing raises - you lived without them before, maybe you can continue to do so
Tip 3 – Use automatic contributions through your paycheck, if possible
Tip 4 – Take full advantage of your employer’s match
Tip 5 – Keep things simple
DailyFinance.com has an article with more details about these tips to jumpstart your retirement savings.