Are You Saving Enough for Retirement?
Are you saving towards retirement? If so, is the money coming out of your pay check before you get it? If you answer ‘Yes’ to both questions you are doing well. You are saving the way you MUST save for retirement.
If you answer ‘No’ then you are looking ahead to a bleak old age unless you do something – now. Only in your twenties? Well, that is the best time to start putting money into your retirement fund because the money has a long time to increase in value – and believe me, over 30 years even a few dollars can turn into a decent amount of money.
Quite simply, if you are not saving you are wasting money because every time you put some money into a retirement fund, the government puts some in – well, actually, they give you a tax rebate, which is the same thing. Also, if your employer runs a pension fund, the firm usually puts some money into it each time you do so. A retirement fund is a win, win situation.
So let’s start saving. Now, are you saving enough. Most people save 3-6% of their salary and put that into their retirement fund, but these days that is not enough. Why not? Well, it is reckoned that to end up with enough to live on, with the current expectations of inflation – higher in the future than in the past – you will need to save more like 11% of you pay for retirement.
If you are struggling with a big mortgage this amount may seem a lot. But are you putting too much into your house? For a start, are you getting the best deal on your mortgage. If you can trim something off the payments without paying for the rest of your life – definitely not recommended – and put that into your retirement fund, you will be better off.
How much are paying for your car? If you can’t save enough for retirement, consider getting an older care with lower repayments. Then, put some more money into your retirement fund. You will be glad you did.
Whatever you do with your money, try to put a bit more into your retirement fund. I don’t recommend you put more than 11% into the fund, because you want to have some savings outside your pension fund ir retirement fund.
Disclaimer
The information on this web site does not constitute an offer in any way. It gives general information, but is not financial advice. The aim is to help you decide what to do about your retirement plan, and the importance of saving for retirement. You should consult a retirement planning adviser with a proven record before setting up a retirement plan.
Discover more about saving for retirement at Retire When U Like.
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