Tips for Planning for Retirement
It's never too late to start planning for retirement. Here are some of the best ways to build your savings for the future.
Many individuals understand the importance of having savings for retirement, yet a recent report from the Federal Reserve found that nearly a quarter of all American adults have no retirement savings or pension at all.
Having a retirement plan allows individuals to spend their post-career years comfortably, or enjoying the leisure and travel activities they've long desired. If you're wondering how to make the most out of your retirement or are just starting to think about planning it, here are some of the best things you can do to stretch your dollars.
Start saving early
This may come as no surprise, but the earlier you start saving for your retirement, the better. NerdWallet recommends individuals start building up their savings in their 20s to give their money time to grow. That being said, it's also never too late to start planning.
Even if you're in the midst of your career and retirement seems far off, don't be discouraged - you can still begin working on your savings plan. Start saving today because every dollar you can put into a retirement account now has the potential to hold more significance later. If you already have a stable income and some savings, you may also want to consider making strategic investments for your future. A trusted financial professional can help you identify the best retirement options.
Your retirement savings will grow over time.
Figure out your current cost of living
You will also want to determine how much money you will need saved to maintain your lifestyle after retirement. Kiplinger estimated that people wanting to retire around age 65 should have assets totaling between eight and 14 times their pre-retirement gross income . (The website also offered a handy chart outlining how much you should have saved depending on your age.)
Setting out smaller goals for saving over your career instead of one ultimate goal is the best way to plan for retirement. Also take into consideration what your plans will be. Are you looking to downsize your home? Travel often? Or will you pick up a part-time job for an added cushion? This could influence how much you will need to save.
Use an IRA and/or an employer match
If your employer offers to match contributions to your retirement savings account, definitely take advantage of it. As Forbes explained, it's like additional free money to build your retirement account. Even making the minimum required contributions can significantly grow your funds.
Another great savings option is an individual retirement account. Depending on your situation, an IRA can offer you a greater variety of saving and withdrawing options.
Save for retirement with Vectra Bank
There is no one-size-fits-all retirement plan. That's why Vectra Bank offers three great choices for individual retirement accounts:
- IRA Certificate of Deposit
- IRA Jumbo Certificate of Deposit
- IRA Money Market
The best IRA for you depends on the balance you plan to maintain, how often you wish to make deposits and when you'll need to withdraw the money. Always consult a tax profesional for information specific to your situation.
Contact your local Vectra Bank representative today to learn more about starting a savings account for your future.