Less than a third of working people have more than one thousand dollars saved for retirement and more than half of the working people have $25,000 saved. Enterprises TV reviews what we need to know about retirement.
Very few people have taken time to determine how much savings they will need when they retire. Those with an employer retirement plan like a 401K, feel slightly more confident than those without one. Reasons cited are: cost of living and daily expenses. As salaries remain stagnant, unemployment barely fluctuating and the cost of food and gas rising – it is easy to see why some are having a hard time putting money aside for the so-called Golden Years. But there are relatively painless ways of saving:
Workers who are 40 years and older should try to automatically deposit 20% of their income every year. This may seem like a lot but it boils down to a $200 to $300 per paycheck if paid bi-weekly.
If not, work through a monthly budget to see how much can be set aside for retirement. Even $50 a month is okay if that’s all one can do.
Try to invest up to the company’s match.
The Enterprises TV show encourages readers to consider working past age 65 and even 67 to age 70 in order put away as much in retirement accounts as possible. Also, delaying taking Social Security increases the payout at age 70. What we need to know about retirement is that even if we have little saved now, we can still catch up before leaving the workforce. It’s not the lost cause some make it out to be.