Do you know how much money you’ll need to maintain your family’s current standard of living in retirement? If the answer is No, you’re not alone
2009-07-22
Today’s modern workforce is the most mobile. Most employees change jobs many times throughout their career. As a result, the company pension programs created for loyal staff who stay for 25 years or more have become nearly extinct. Yet many of us erroneously believe that the government will fill in the income gap at the end of their career. Unfortunately, with millions of Baby Boomers expected to live well into their eighties, 20 or 30 years past retirement age, many seniors will be left short by their failure to adequately plan for their financial futures.
* Get the facts: Knowing how to secure your financial well-being is a critically important life skill, but no one is born knowing how to save and invest. The first step in learning about saving and investing, or choosing an investment product, is to gather as much information as you can through careful research. How you save is just as important as how much you save. Inflation and the type of investment play important roles in calculating the amount you’ll have saved at retirement. Financial security and knowledge go hand in hand.
* Know your retirement needs: Retirement is expensive. Experts estimate that you’ll need about 70 % or more of your pre-retirement income to maintain your current standard of living.
* Learn about your employer’s pension or profit sharing plan: If your employer offers a plan, check to see what your benefit is worth. Most employers will provide an individual benefit statement. Before you take a new position, find out what will happen to your accrued pension.
* Devise a plan and stick to it: Financial security starts when you take personal responsibility for your financial well-being. If you pay attention to your money and take charge, you’re more likely to gain financial security. And the sooner you begin saving, the more time your money has to grow.
The small steps you take today can really add up over the years. Whether your goal is buying a home, sending your kids to college, or investing for a comfortable retirement, you’re more likely to achieve your goals if you start planning for your future today.
