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1 |
Knowing Your Retirement Needs. |
| Retirement can be expensive. Experts estimate that you willl need about 70% of your pre retirement income lower earners, 90% or more - to maintain your standard of living when you stop working. You Should Understand your financial future. | |
2 |
Finding Out About Your Social Security Benefits. |
| Social Security pays the average retiree around 40% of pre retirement earnings. Call the Social Security Administration at 1-800-772-1213 for a free Personal Earnings and Benefit Estimate Statement (PEBES). | |
3 |
Learning About Your Employer's Pension or Profit Sharing Plan. |
| If your employer offers or offered a plan, check to see what your benefit is worth. Most employers will provide an individual benefit statement at your request. 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. For a free booklet on private pensions, call the U.S. Department of Labor at 1-800-444-3272. | |
4 |
Contributing to a Tax Sheltered Savings Plan. |
| If your employer offers or offered 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, deferral of taxes and
compounding of interest make a big difference in the amount of money you
will accumulate. |
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5 |
Asking Your Employer to Start a Plan. |
| If your employer doesn't offer a retirement plan, suggest that he, she or they start one. Simplified plans can be set up by certain employers. For information on simplified employee pensions, order Internal Revenue Service Publication 590 by calling 1-800-829-3676. | |
6 |
Putting Money Into an Individual Retirement Account. |
| You can put $3,000 a year into an Individual Retirement Account (IRA) and delay paying taxes on investment earnings until retirement age. If you don't have a retirement plan (or are in a plan and earn less than a certain amount), you can also take a tax deduction for your IRA contributions. IRS Publication 590 contains information about IRAs. | |
7 |
Do Not Touch Your Savings. |
| Do not dip into your retirement savings. You will lose principal and interest, and you may lose tax benefits. If you change jobs, roll over your savings directly into an IRA or your new employer's retirement plan. | |
8 |
Starting Now, Set Goals, and Stick to Them. |
| Starting early. The sooner you start saving,
the more time your money has to grow. Put time on your side. Make
retirement saving a high priority. Devise a plan and stick to it, and set
goals for yourself. Remember, it's never too late to start. Start
saving now, whatever your age is.
Maximize your personal financial goals with this Excel primer that guides
you through important financial topics and decisions. |
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9 |
Considering 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'll have saved at retirement. Knowing how your pension or savings plan is invested. Financial security and knowledge go hand in hand. | |
10 |
Asking Questions. |
| These tips should point you in the right
direction, but you'll need more information. Talk to your employer, your
bank, your union, or a financial advisor. Ask questions and make sure
the answers make sense to you. Get practical advice and act now. |
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Facts |
Financial Security doesn't just happen, it takes planning, and commitment, and yes, money. |
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Less than half of Americans have put aside money specifically for retirement. |
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You can't retire with security unless you really prepare for it. That means facing up to reality, and beginning to take action for tomorrow as well as today. |
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In 1993, of those who had 401(k) coverage available, one-third didn't participate. |
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Putting away money for retirement is like giving yourself a raise. It's money that gives you freedom when you want it-and deserve it. |
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The average American spends 18 years in retirement. |
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Today, half of Americans guess when determining their retirement needs. Don't be one of them. Find out more. Save now and beat the retirement clock. |
