Retirement Savings Tips to Help Avoid Regret
October 21, 2015
According to a recent TIAA-CREF Ready to Retire survey, “…more than half of people approaching retirement (52 percent) say they wish they had started saving for the future sooner” Some key findings from the survey also included:
- 47 percent of respondents wish they had saved more of their paychecks for retirement and 34 percent wished they invested their savings more aggressively.
- 45 percent of participants ages 55-64 said that financial readiness was the most important factor in determining when they will retire, but only 35 percent say they saved in an IRA or have met with a financial advisor.
- 68 percent of those approaching retirement said they are not prepared for what is to come.
In honor of National Save for Retirement week we wanted to come up with a few tips to help you avoid regret when it comes to saving for your retirement.
If you are currently working, make sure you are enrolled in your employer’s 401(k), 403(b) or whatever type of retirement plan they offer and contribute as much as you can. Make sure that you are at least contributing to the point of a match.
Increase your contributions
The maximum 401(k) contribution limits for 2015 are $18,000, if you are over 50 the max is $24,000. Try to contribute a little more each year.
Start a self-employed retirement plan
If you ever become self-employed, start a plan such as a SEP or Solo 401(k) plan as it is still important that you save for retirement.
Contribute to an IRA
Anyone can contribute to an IRA. Traditional IRAs are subject to income limits as far as the ability to make pre-tax contributions, but anyone can contribute on an after-tax basis with no income limits. All investment gains grow tax-deferred. Roth IRAs can also be a good alternative; again there are income ceilings that can limit your ability to contribute.
Don’t ignore old retirement accounts
It is not uncommon for people to have worked for five or more employers during their career. It is very important that you make an affirmative decision as to what you with to do with your old 401(k) or other retirement account when you leave that employer. Leave it where it is, roll it to an IRA, or to your new employer’s plan (if allowed). Don’t ignore this money.
To meet with one of our wealth advisors about your retirement please call 763-231-9510 or email Katherine@prosperwell.com
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.