Saving for retirement is never a fun topic to discuss. Usually, retirement savings triggers feelings of guilt, knowing that we should be spending less and saving more. It’s a complicated topic and it’s not a surprise that each generation looks at retirement differently. We all have the best of intentions when it comes to saving but things like work, taking care of their families, parents, attending school, recovering from illness, or starting a business often interrupt the best of plans. It’s no surprise that the majority of Americans feel stressed about saving for retirement. Below are some tips to help consumers save and stop worrying about the future.
A Little Savings Goes a Long way
Start by tucking a way a small set amount each month but make sure you have enough to cover your monthly expenses. The key is to keep that money in savings so your money can grow via compound interest. To ensure you reach your retirement goals, plan on not touching your savings under any circumstance. All financial advisers will tell you that the earlier you start to save for retirement the better. Your retirement funds need to time to grow over a long period of time. Start today!
Establish a Budget
Its hard to know how much you will need when you retire. Often life will change the amount you need over the years. Putting a fixed amount into your retirement monthly is a good place to begin. Coming up with a budget that takes into account all your expenses helps you estimate how much you can contribute. About 81 percent of consumers don't know how much they will need when they retire. Many will need $500K per year which can seem daunting.
Find a Plan That Is Right for You
There are so many different financial products to help optimizeretirement savings and it can be incredibly confusing and overwhelming to find the right one. A good financial counselor at a bank or investment firm can help you choose the right plan for you. Retirement professionals can help map out a personalized plan for you that protects and grows the money you are saving for retirement. If you are not ready to consult with a professional then a great starting point is saving 15% of your salary every year over a30-year period.
Take Advantage of Employer Retirement Plans
Find out if your company has a retirement plan and enroll in it. Start early and take advantage of work related retirement programs.
Look for Help
Don’t be afraid or embarrassed to ask for help. Finding the most efficient way to save for retirement for your situation is incredibly important. A financial counselor can help find the right answers for you. Below is a helpful infographic about retirement. Take a look and compare how you are progressing against others in your age group.
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