Most people look forward to their retirement, especially after they have been working for several years. They believe retirement will be a wonderful time when they can do things they could not during their working years. While this is somewhat true, it takes careful planning to live the retired life you had planned. Especially babyboomer. Many are outliving their income.
- 45% of Babyboomers had almost nothing saved for retirement.
- 59% expect social security to be their major source of income.
- 30% postponed their retirements plans and the other 30% stopped contributing to their retirement plans.
- Babyboomers are living longer than their savings and investments.
- Due to recession or major events has lost their savings or homes.
If your company offers you a 401K plan, contribute as much as you can to it, up to its maximum. This is a great way to save for your retirement. All you need to to do is to contact your HR department, and funds will be deducted from your paycheck automatically each month and deposited into your 401K account.
If you don’t know where to start saving for retirement, check with your employer. Many employers offer not only a 401k savings plan, but also contribute matching funds. Regardless of how much of your income you should save, save at least the amount to get the full match. Never leave free money on the table.
Would you like to know how you can prevent this from happening to you? Click here