1. It is never late, so start saving
If you have not been saving for retirement, then it is time to cultivate that habit. Start with a meager amount and increase it with time. Make a plan, set the goal and stick to it.
2. Make contributions to your retirement savings plan
If your employer gives you an offer to join a retirement savings plan, such as 401(k) plan, never hesitate to sign up and contribute. This plan will have tax saving benefit as a result the compound interest and tax deferrals will make a huge difference in the amount you save over a period of time.
3. Plan your post retirement needs
According to experts, you will require at least 70% of your pre-retirement income to maintain the standard of your living when your employment stops. The only solution to overcome this situation is planning ahead.
4. Study your employer's pension plan
In case your employer has a pension plan, find out if you are covered by the plan and learn how it works. Never forget to check what will happen to our plan if you change jobs.
5. Request your employer to begin a plan
If you find that your employer doesn't provide any retirement plans then suggest the human resource management to start one. There are numerous retirement plans available; your employer could be able to start a simpler scheme that would be beneficial for both the parties.
6. Never withdraw your retirement savings
Never withdraw your retirement savings because if you withdraw now, you may lose principal and the interest rate and you will lose tax saving benefits or you may have to pay penalties for withdrawal.
7. Deposit money to an Individual Retirement Account
You can deposit up to 5,500 dollars a year into an Individual Retirement Account (IRA and can deposit a higher amount if you are above 50 years of age. You get two options while opening an IRA-a conventional IRA or a Roth IRA. The tax treatment of the savings depends on the options that you choose.