As we watch the cost of essentials like groceries and housing go up, finding spare funds to set aside can be a challenge. But the truth is, saving for retirement is one of the most important things we can do for ourselves to ensure financial security. We’ve put together a list of practical tips and resources to make saving for retirement a little less intimidating.
1. Start Saving
Well, that seems like a given. But really, just start saving! Whether it is five dollars a month or five-hundred dollars a month, pick an amount and stick to it.
2. Calculate How Much You Need to Retire
Retirement isn’t cheap. How much will you need to retire at 65? It’s important to understand what your future financial needs will be. The U.S. Department of Labor, Employee Benefits Security Administration (EBSA) provides plenty of resources to help you estimate this.
3. Contribute to a 401k and/or Roth IRA
If your employer offers a retirement savings plan like a 401k, take advantage, and contribute as much as you can. An Individual Retirement Account (IRA) allows you to contribute up to $6,000 per year, even more if you are fifty or older.
4. Look Into Your Social Security Benefits
The Social Security Administration’s website has tons of valuable information, and you may even be able to estimate your benefits using their retirement estimator. Learn more at socialsecurity.gov.
5. Learn the Basics and Ask Questions
Even if you are not ready to take immediate action, begin today by expanding your knowledge about financial security. Learn the differences and benefits between a 401k and IRA. Ask questions, talk to a financial advisor, your employer, your union, your bank, heck, ask TikTok! There is a wealth of information out there, make it a priority to seek it out and attain a thorough understanding.