Are You Ready For Your Retirement?

If your idea of planning for your senior years is playing the lotto, it is time for a reality check. Those years are going to be here before you know it. Here are some retirement planning facts and tips to prime the pump for you.

It doesn't matter if the money goes into a 401(k) plan, an IRA or into a plain, old-fashioned savings account, just start saving.

Start early. The sooner you start saving, the more time your money has to grow. Put time on your side. Make retirement savings a high priority. Devise a plan, stick to it, and set goals for yourself.

Remember to review your Social Security Statement each year for accuracy. This is your fallback retirement position, so make sure it is correct.

Today, only 42 percent of Americans have calculated how much they need to save for retirement. Have you?

Call the Social Security Administration at 1.800.772.1213 for a free Social Security Statement and find out more about your benefits.

On average, a female retiring at age 65 can expect to live another 20 years, 3 years longer than a man retiring at the same age. Savings can increase a woman's chances of having enough money to last during her retirement.

Take inflation into account. A mere 3 percent gain each year can mean you will need nearly twice your salary at 40 to live comfortably at 80.

Financial Planners say that a person needs about 70% of their pre-retirement income to live a comfortable retirement.

Consider moving when you retire. If you love in a location with a high cost of living, moving to a lower cost area such as Florida can make a big difference.

Your social security statement should come to you each year around your birthday. If it does not, contact the agency to update your address.

An investment of $10,000 that earns 10% annually over the course of 40 years will amount to nearly $453,000 at the end of that stretch of time. Over the course of just 25 years, however, that same 10 grand increases to a mere $108,347.

Instead of blowing a tax refund, have the IRS deposit it directly into your IRA or retirement account.

If you have a lump sum of cash to contribute to an IRA, go with a Roth IRA. Why? You will get the distributions tax-free.

Some 51% of Americans age 55 and older have saved less than $100,000. Some 28% have saved $250,000 or more.

When is it too late to start saving for retirement? It never is. People starting at 50 can still save a lot of money.

For most people, retirement is their biggest financial worry. The key to limiting this concern is to save every penny you can today. Time will make all the difference in your returns, so make sure you save, save, save!

Barry Waxler is a financial advisor with UFCAmerica.com.

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Are You Ready For Your Retirement?
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