HOW TO GET READY FOR RETIREMENT
For most people, retirement feels like a long way off. But, if you don’t start preparing as early as possible,
you may find yourself in a place of financial insecurity when the time does come. To avoid this, consider
implementing the following tips.
- Calculate your target savings. In general, it’s recommended that you save between 10 to 15 percent of
- your income for retirement. However, you can always use an online savings calculator to determine the
- amount you need to save for your specific needs and goals.
- Contribute to your employer’s retirement savings plan. Does your job offer a 401(k), traditional IRA, or
- Roth IRA? Sign up and start saving as soon as they allow you to. It’s recommended to set up automatic
- paycheck deductions and, once the money is in your retirement fund, don’t touch it.
- Take advantage of employee benefits. Many employers offer matching which generally requires you
- contribute a certain percentage of each paycheck and your company will then contribute a matching
- amount with funds of their own. They might also offer health savings or flexible savings account. By
- contributing to these accounts, you reduce your amount of taxable income, allowing you to save more
- money.
- Pay off your debts. Start by paying off any high-interest credit card debt first. Then look at other debts,
- such as student loans and car payments, and make a plan for paying those off incrementally.
- Reduce daily spending. Although this feels like a no-brainer, spending your money thoughtfully now
- can make a big impact later. Seek out areas of your life where you can