Saving for retirement should begin as early as possible. It takes planning and commitment and is a good habit to get into. Saving for retirement should figure into your budget. Below are several saving tips to remember and put into practice ...
1) If your employer has a
pension plan
, check to see if you are covered by the plan and find out how it works. For example, if you change jobs, what will happen to your pension benefit?
2) If your employer offers a retirement plan,
contribute
as much is allowed or at least match the employer's contribution. If they don't have a retirement plan, suggest they start one. Increase your contribution amount with each increase in salary.
3) Do you know your
retirement need
s
? Experts estimate you will need at least 70 percent of your pre-retirement income, lower earners will need 90 percent or more in order to maintain the standard of living they had while working.
4)
Don't withdraw
from your retirement savings. Withdrawing from your savings will cost you in principal, interest, possibly tax benefits and you may also be required to pay a penalty. If you change jobs, leave your savings invested in your current retirement plan, or roll them over to an Individual Retirement Account (IRA) or your new employer's plan.
5) Find out about your
Social Security
benefits.
6) Take advantage of
automatic payroll deduction
. It's the easiest way to save. If you don't see it, you will not miss it.