Are You on Track for Retirement?

Retirement & Investing
on October 8, 2013

Thinking of retirement means you can never start too early to set up a plan that will meet the needs of your financial future. Maybe you have been asking yourself if you are on track for retirement? Maybe you haven’t started saving anything yet. It’s never too late to start and there are plenty of things you can do make sure you don’t have to worry about it when the time comes.

How Much Will I Need?

Experts say that you should consider at least 80 percent of your current income as being what should sustain you during your retirement years. This financial calculator is an easy way for you to punch in your current numbers to forecast how much inflation will impact numbers when you retire. It also takes other factors into consideration such as your current age, what age you plan to retire and how much your income is expected to increase. These numbers shouldn’t be considered definite but a generalized ball park so that you can start implementing savings now.

How to Start Saving

If you live within a budget or just can’t seem to put away any money after each pay period, you need to change your habits. If you are currently putting money away, consider raising that amount by just one percent over the next year. If you can afford to do more you should. Any additional money you acquire through a job promotion bonus or tax refund should be put into an IRA or Individualized Retirement Account. This will help build up your nest egg faster.

Take Advantage of Employer Retirement Accounts

Maybe you haven’t been putting a lot of money into your 401(k) program at work. If your employer price matches, you should invest as much of your own money as you can afford to. The future benefits will be tremendous and you will see a significant rise in what you can expect for retirement annually. For example, earnings of $50,000 a year could yield as much as $1500 annually if your employer provides a 3 percent price match. Consider diversifying retirement funds with an after-tax Roth savings account. This will allow you to get early access to funds, flexible withdraws and smaller tax bills in retirement.

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Stay on Top of Future Finances

Don’t be left in the dark. Start now by looking at your social security statement online. This will tell you your earnings history and what you can expect in a future payout. It is important to know where you stand so you can start to build on your social security for retirement funds. Try to make double mortgage payments on your house so you can pay it off faster, before you reach the age of retirement. Avoid accumulating debt and additional cars or expenses.

Being on the right track toward retirement means thinking ahead and what you can do now to start saving and building your future nest egg.

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