It’s America Saves Week! That means it’s a great time to see how you’re doing with your savings goals. Most working Americans know they need to save for retirement. Sometimes though, because retirement is far off in the future, we may delay saving. When everyday expenses routinely pop up, saving for a time that is years away in the future can seem less urgent.
We’re working with Social Security to help you consider what your retirement will look like. The following strategies can make it easier for you to save for retirement:
- Start Small. Saving something is better than saving nothing – especially with compound interest. Just $5 per day could yield a return of $1 million in 48 years with the right investments. Consider saving as early as possible. Start with 1% and increase how much you save each year.
- Free Money. Many employers offer a contribution match. If you can afford to, contribute at least the same amount or percent of salary that your employer matches. This will automatically double your investment. That $5 per day could become $10 per day, – earning even more investment income on your contributions. If you are over age 50, you may be able to take advantage of the IRS-allowed catch-up contributions.
- Make it Automatic. Set up automatic contributions either through your employer or financial institution. Keep your retirement money allocated for retirement only. You should have a separate account for unexpected expenses to avoid dipping into your retirement accounts.
- Make a Plan. It’s important to know what type of lifestyle you want in retirement and how much money it will take to sustain that lifestyle. Check out our guide, 6 Steps to Jumpstart Your Retirement Journey, for more information.
- Take the America Saves Pledge. Make a simple plan to meet your savings goals – and get long-term accountability and support. Take the pledge today.
- Remember Social Security. Be sure to check your personal my Social Security account to see how much you could receive in retirement based on your earnings history. If you don’t have a personal my Social Security account, you can create one today in just a few minutes.
It’s never too late to start contributing to your retirement plan. Let America Saves and Social Security help. Your future self will thank you! Please share this information with your friends and family – and help us spread the word on social media.
Social Security Matters