Saving for retirement is an important step for us all to take toward financial stability in old age, and yet many Americans are not doing enough to prepare. According to a 2016 Retirement Confidence Survey conducted by the Employee Benefit Research Institute (EBRI), only 21% of employees poled said they were very comfortable with the amount of money saved for retirement, and only two-thirds of employees are even saving for retirement at all. Additionally, those who do not currently have a retirement plan have very little confidence about their ability to afford a comfortable retirement. Given this information, there is no better time to start taking even the smallest steps toward saving for retirement!
Regardless of where you are in the process of saving for retirement, there are steps you can take to build a more stable financial future:
Have a plan. Individuals who have a plan for their retirement are far more confident in their financial futures. Because of this, it is important to set goals for your retirement and make a plan now. Once you have a plan, you will benefit from having something to help keep you on track so you are able to achieve your retirement goals.
Research your retirement savings options! The earlier you start saving for retirement, the more compound interest will benefit your financial future. Today’s savings could be worth three times as much in 20 years if you earn a realistic 5.5% return on your investments. If you are employed, a great place to start is being aware of the retirement options available to you in your workplace.
If you are not offered a retirement option through your employer, there are products available to you that will make saving for retirement easier and much more accessible! One such product is an Individual Retirement Accounts (IRAs). In fact, anyone who earns income can deposit money into an IRA account, making it a great option for those who wish to save outside of work. In addition, you can also look into the new myRA program. This program is made available by the U.S. Treasury, and is designed to make saving for retirement easier for all Americans. There are plenty of products available to match your needs, so it is beneficial to see which best works for you!
In addition, you can sign up for a my Social Security Account to help you stay on track of what your social security benefits will be, as well as when you should start receiving them. There can be significant financial benefits to waiting just a few more years to retire – make sure you understand the tradeoff between more years of retirement and more resources to enjoy those years!
Always try to save, regardless of how much! After setting your savings goal and creating a retirement plan, it is important to focus on saving regularly, even if the amount varies from month to month. You can also take the pledge to save with Ohio Saves, and receive tips and information to help you keep your savings goals on track!