Today, only 43 percent of Americans have calculated how much they need to save for retirement. In 2005, of those who had 401(k) coverage available, 25 percent did not participate. Although today in 2010 because of the recession, many employers do not offer any type of benefits.
Since the average American spends 20 years in retirement, putting money away for retirement is a habit we can all live with. The US Department of Labor has put together a list with helpful ways to protect seniors as they approach retirement.
Know Your Retirement Needs
· Retirement is expensive. Experts estimate that you’ll need about 70 percent of your preretirement income – lower earners, 90 percent or more – to maintain your standard of living when you stop working. Take charge of your financial future.Find Out About Your Social Security Benefits
· Social Security pays the average retiree about 40 percent of preretirement earnings. Call the Social Security Administration at 1.800.772.1213 for a free Social Security Statement and find out more about your benefits at www.socialsecurity.gov.
Learn About Your Employer's Pension Or Profit Sharing Plan
· If your employer offers a plan, check to see what your benefit is worth. Most employers will provide an individual benefit statement if you request one. Before you change jobs, find out what will happen to your pension. Learn what benefits you may have from previous employment. Find out if you will be entitled to benefits from your spouse’s plan.
Contribute To a Tax-Sheltered Savings Plan
· If your employer offers a tax-sheltered savings plan, such as a 401(k), sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, compound interest and tax deferrals make a big difference in the amount you will accumulate.
Ask Your Employer to Start a Plan
· If your employer doesn’t offer a retirement plan, suggest that it start one. Certain employers can set up simplified plans.
Consider Basic Investment Principles
· How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you will have saved at retirement. Know how your pension or savings plan is invested. Financial security and knowledge go hand in hand.
Put Money Into an Individual Retirement Account
· You can put up to $4,000 a year into an individual Retirement Account (IRA) and gain tax advantages.
· When you open an IRA, you have two options – a traditional IRA or the newer Both IRA. The tax treatment of your contributions and withdrawals will depend on which option you select. In addition, you should know that the after-tax value of your withdrawal will depend on inflation and the type of IRA you choose.
Don’t Touch Your Savings
· Do not dip into your retirement savings. You’ll lose principal and interest, and you may lose tax benefits. If you change jobs, roll over your savings directly into an IRA or you new employer’s retirement plan.
Start Now, Set Goals and Stick to Them
· Start early. The sooner you start saving, the more time your money has to grow. Put time on your side. Make retirement savings a high priority. Devise a plan, stick to it, and set goals for yourself. Remember, it’s never too early or too late to start saving. So start now, whatever your age!
· These tips point you in the right direction. Nevertheless, you’ll need more information. Talk to your employer, your bank, your union, or a financial adviser. Ask questions and make sure the answers make sense to you. Get practical advice and act now.Financial security doesn’t just happen. It takes planning and commitment and, yes, money, another good reason to get the best advice when searching for an assisted living option for yourself or an elderly love one. Visit General Health Questions for more questions and answers related to health! Need Payday loans? Online Payday Loans and Direct Lender Information on protein Protein Powder Reviews