People are now living longer, well into their 80s and 90s. Most will retire in their 60s, meaning they will have another 20 to 30 years ahead of them. How will they pay for those years? It is important to begin planning for retirement as soon as possible. It is believed by many experts that retirees will need approximately 70 percent of their pre-retirement income to live during retirement. This number may even be as high as 90 percent if you are a low-income earner. It is also important to think about what you may want out of retirement and devise a savings plan.
Getting Rid of Debt
The average American household has roughly $5,000 worth of debt. The average household with credit card debt carries the burden of approximately $15,000. While still in your working years, one of the things you should do is rid yourself of this debt as quickly as possible. One of the things you could do is take out a car title loan. Embassy Loans is one of the leading consumer finance companies in Florida and has helped thousands of customers obtain car title loans in an effort to repair a financial situation.
A car title loan can help a household consolidate high-interest debt into one smaller payment. The debt can be paid off much more quickly, and the savings can then be invested in saving for retirement.
Employer Retirement Plans
Upon beginning work for a new employer, ask about a retirement program. If the employer has one, make sure you contribute the maximum. Many employers will match your contributions. Take advantage of this as long as you can. If you work for the government, whether federal or state, your employer may have a pension plan. Find out as much information as you can about it. Before you change jobs, you should understand the pros and cons of doing so.
Maximize Your Contributions to an IRA
You can open an individual retirement account (IRA) at any time. Each year, you can deposit a certain amount into an IRA and reduce your annual tax liability. Consult with a tax professional for more advice. Use the IRA to your advantage by paying less in income taxes (or even receiving a refund) each year all while putting money toward your retirement. Putting money into an IRA will also make those funds less likely to be spent as opposed to putting money into an easily accessible savings account.
These are just a few of the easy tips that you can use to save for retirement. You can consult with a tax professional or even a retirement planner for more information.