Think you’ll have $1-million saved for retirement? Most Americans don’t, as a new survey finds that only 70% think they’ll reach that goal. The thing is, that’s not even as much money as people feel they’ll need to have set aside for retirement, that magic number is $1.28-million, according to the research.
It reveals that only 30% of American workers with a retirement plan expect to have $1-million saved, while 48% think they may reach $500-thousand and another 26% are hopeful they’ll have $250-thousand saved. So, it’s not surprising that many Americans have a lot of doubt about being able to save enough to retire. But experts say by taking the right steps now, it’s still possible to build a more secure financial future.
Here’s what they recommend to boost retirement savings.
- After enrolling in your employer’s retirement savings plan - See if it allows pre-tax contributions, which reduce taxable income by deducting money before calculating federal income taxes.
- If your employer offers a 401(k) with a matching plan, contribute enough to get the full match - If they match 50% of contributions up to 5% of your salary and that salary is $50-thousand, if you contribute $2,500, the employer will add $1,250.
- If you’re 50 or older, look into catch-up contributions to IRA or 401(k) plans - Yearly contributions are limited for those under the age of 50.
- Check into opening a traditional IRA or a Roth IRA - They’re both retirement savings accounts with tax advantages, but the way the tax benefits are applied is different for traditional and Roth IRAs.
- Consider putting 1% to 2% of your salary in retirement savings - Then raise the amount by 1% or 2% every year.
- If you get a bonus or a raise - Try to put at least half of that extra money toward retirement.
Source: GoBankingRates