Urgent Message from Your Future: Save Today for Tomorrow
When it comes to saving for retirement, there is never a better time than today to assess your prospects toward meeting your goals. And with our nation’s leaders declaring Oct. 17 through Oct. 23 as National Save for Retirement Week, you have a great opportunity.
National Save for Retirement Week is the first congressionally-endorsed, national event formally calling on all employees to take full advantage of employer-sponsored retirement plans.
Experts predict that retirees will need from 80 percent to 100 percent of their pre-retirement income to maintain their lifestyle after retirement. Yet surveys show that most Americans remain unprepared for retirement.
As an employee or a business owner, chances are you already participate in a profit sharing plan or other retirement plan, which will provide you with a foundation once you enter retirement. And, you will also be eligible for Social Security benefits when you reach retirement age.
But, that won’t be enough. You will need to add your own retirement savings from your wages in order to live comfortably during your retirement years – to fulfill your dreams.
So it is important to begin saving today for retirement – or increase your contributions if you aren’t meeting your goals. National Save for Retirement Week is dedicated to showing you how important it is meet your objectives, by contributing regularly and investing wisely for the long term.
Here are a few simple steps you can take today so you will be prepared when it’s time to retire:
- If you save just $10 per week in your 401(k) plan for 40 years and earn an average rate of return of 7 percent, you will have over $100,000 in your account. That just shows the power of tax-deferred savings.
- If you start a little later, don’t be discouraged. You can still save more than $73,000, by setting aside $60 a month in your 401(k) account for 30 years and earn a return of 7 percent.
- If you are saving now and increase your contributions, you can really make a difference in your final total. Over 30 years, adding $25 to your $100 biweekly contribution can increase your account from $264,327 to more than $330,409, assuming you earn 7 percent.
- Saver’s Credit. Sometimes saving seems really hard, especially if your income is limited. The government has a special Saver’s Credit just for you. If you are eligible, you can actually receive money back when you file your tax return.
There are many resources available on the internet to provide you with the information you need to plan for retirement. Here are a few sites that will help you get started:
- Social Security Administration – You will find calculators to determine what your benefit will be, information on how to apply for benefits and other information about the government retirement system.
- American Savings Education Council – A useful calculator helps you estimate how much you need to save to meet your retirement goals as well as a number of savings tips and useful brochures.
- American Association of Retired People – has financial planning guidelines for retirement.
Take advantage of National Save for Retirement Week. Save now – your retirement future starts today.