Tips on Saving for Retirement
You work hard for your money all your life, and you want to make sure you are able to enjoy it be comfortable during the big vacation we all look forward to, called retirement. While everyone's situations vary, some professionals have estimated that the average person will need about 75-80% of their current income in order to maintain their pre-retirement style of living. We know this sounds like quite a feat, but LNB has some tips that will help make this savings issue seamless.
Start Early: When you are young, retirement is usually the last thing on your mind. However, we recommend saving for retirement as soon as possible. Even a little bit every week or month makes a difference in the long run. With one of our many savings account options, you will able to find one that suits you best.
Budget: Having a budget is always a good idea to organize your finances, but budgeting in money for retirement will really help you in the long run as well. Instead of sporadic deposits when you feel you have extra money, if you contribute a designated amount every month your account will grow and you will ultimately receive a better return on investment.
Know Your Options: We understand that the job market is very competitive, and today more than ever before people have multiple jobs or unique forms of income. Just because you may not have a career that offers benefits at this point in your life does not mean you shouldn’t be saving for retirement. You can actually start your own account whenever you want, called an Individual Retirement Account, or IRA. Learn more about this and how it differs from an employer sponsored plan here.
Employer Matching: If you are in a situation where your employer does offer retirement benefits, we recommend taking full advantage of this. Many companies will match what their employees put into the account up to a certain percent. Don’t look back on your past and wish you had taken this great opportunity - take it now!
Catch Up: While we recommend saving young, it is not always possible as life is unpredictable. If you were not able to put yearly contributions into your 401(k) or IRA accounts as much as you would have liked, do not fret, because there are still opportunities! If you are the age 50 or over, you are able to make higher monetary additions than before due to what they call “catch-up contributions”
At LNB, we want you to succeed, and enjoying your lifetime of hard work in retirement is a major one. If you want more information on saving for your future, talk to one of our team members today.