Pre-retirees Less Confident about Retirement, Survey Says
If you are anxious about not having enough saved for retirement, you’re not alone. In a recent AARP survey of 1,500 middle-income workers between the ages of 40 and 59, just 48% say they’ve saved enough for a comfortable retirement. Nearly 30% don’t take advantage of the free employer matching contribution in their retirement plan, and 25% aren’t taking advantage of convenience features in their plans such as automatic paycheck deductions.*
How can I boost savings once my kids leave the nest?
For many couples, retirement planning takes on fresh importance once their children leave the nest, especially if they have put off savings during the child-rearing years. If this is your situation, think about directing a greater share
of your income toward your retirement. It may be helpful to devise a strategy several months before you face an empty nest, figuring out how far behind you are in building your nest egg. Having a written budget is critical, as is auto-depositing your contributions. That way you’re not tempted to spend your increased income once the kids are launched.
Check your tax withholding
The Tax Cut and Jobs Act of 2017 included several provisions that could affect the taxes you pay in 2018 and in the future. If you haven’t already done so, be sure to check with your HR department or benefits manager to verify that you are not under- or over-withholding federal and state tax payments.
Tools & Techniques
Planning app can put you on track
Most people spend more time planning for their vacations than they do their retirement. To get some ideas on how
to plan for a more secure future, try a new interactive tool located at www.AceYourRetirement.org. It takes just three minutes to complete, and it will give you specific ideas on how to put your goals within reach.
Corner on the Market
Basic financial terms to know
Compound interest is the idea that the return you earn each year is added to your principal, so that your balance grows at an increasing rate. This should be the basis of every personal savings plan. To see the effect of compound interest, try the online calculator at moneychimp.com.