Retirement? What You Need To Know About It Before You Do
Planning and Your Future
Each of us must determine what
it is we want to do with this so worked for time in our lives. So many
dreams, hopes and goals are never realized because, as much as we think
and say we have plans for retirement, we rarely do much about it.
Less than half of
Americans have put aside money specifically
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.
- In 1993, of those who
had 401(k) coverage available, one-third
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.
- The average American
spends 18 years in retirement.
The information from
the following companies and organizations may help you get a focus on
ideas and direction you wish to take, but as we said, it really is up to
you to determine what it is you want this period of time to be. After
all, you earned it.
If you have found
something that makes sense to you please write us and share.
Idea Email Hotline
Remember, we are all
going to face this period and we all could use as much help in doing it
right as possible.
to beat the clock
Know your retirement needs.
expensive. Experts estimate that you'll need about 70% of your
pre-retirement income-lower earners, 90% or more - to maintain your
standard of living when you stop working. Understand your financial
Find out about your Social
Social Security pays
the average retiree about 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).
Learn about your
employer's pension or profit sharing plan.
If your employer offers
a plan, check to see what your benefit is worth. Most employers will
provide an individual benefit statement if you request one. 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 1-800-998-7542.
Contribute to a
tax-sheltered savings plan.
If your employer offers
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..
Ask your employer to start a
If your employer
doesn't offer a retirement plan, suggest that he/she 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.
Put money into a
Individual Retirement Account.
You can put thousands
of dollars 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.
Don't touch your savings.
Don't dip into your
retirement savings. You'll 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.
Start now, set
goals, and stick to them.
Start 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, stick to
it, and set goals for yourself. Remember, it's never too late to
start. Start saving now, whatever your age.
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. Know how your pension or savings plan is invested.
Financial security and knowledge go hand in hand.
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.
IT'S NEVER TOO LATE
Start young. A look at
the performance of $2,000
retirement plan investments over time at 4%
shows the value of starting early.
find out more
and Welfare Benefits Administration
U.S. Department of Labor
Publication Hotline: 800-998-7542
above government agencies, many private organizations may be helpful.
For additional information, you may want to contact one of the following groups:
American Council of
Bond Operations Office
U.S. Department of the Treasury
of Retired Persons
of Certified Public Accountants
Commission on Saving
and Investment in America
Efficient Retirement Planning
- Look No Further for Thoughtful Retirement Ideas Than Here.