Many individuals agree that saving for retirement is important, but unfortunately, not many people actually put money aside for their future by participating in a retirement plan at work or one that has been setup for their business.. If you are one who falls in this category, it is important that you understand that it is never too late to start!
This blog gives some important reasons why you should no longer ignore taking on the critical action of saving for your retirement.
1. An estimate of 70 to 90 percent of your retirement income will be needed to maintain your current standard of living when you retire.
2. Social security income could potentially be too low to cover all of your living expenses in retirement, which means your savings must be sufficient to cover what is leftover.
3. Participation in various retirement vehicles can help reduce taxes on your current income.
4. Not having sufficient means of income during retirement could also mean a reliance on your family, who may or may not be able to afford the extra responsibility of caring for you.
5. Not saving for retirement means a reliance on the government’s welfare system during this period. If you don’t think this will be sufficient given your retirement needs, building a nest egg is imperative.
6. Saving a percentage of your income in a retirement plan at work generally does not reduce your take home pay by as much as you may think.
7. It feels good when you take control of your financial future!
If you need more reasons why you should begin saving for retirement, check out what the IRS had to say.
Now is a good time to take action and start saving for your future. Even if you cannot save a large percentage, start with what you are comfortable with and grow from there. To determine how much you can really afford to put towards retirement, check out our cash flow worksheet by clicking the button below:
Retirement Planning and Debt Management goes hand in hand
If you plan to live the "good life" in retirement, you'll need to have control over how you use your income. Mitigating bad debt will also be a critical part of your retirement plan. Get help controlling your finances.
Get on track now