Looking for ideas on how to boost your retirement savings? Kiplinger’s Personal Finance Adviser states that many savers are back on track after the market meltdown a few years ago, but some may need to adjust their vision of retirement. They offer a five-step guide to help you get on track.
RumboughStep 1: Figure your target savings goal and whether you’re on track to meet it; a tool at Kiplinger.com/links/retirementcalculator can help.
Step 2: Aim to contribute at least 15 percent of your gross earnings to your retirement savings, but at the very least, contribute enough to your 401(k) or 403(b) to capture your employer match.
Step 3: Work longer, if you’re able.
Step 4: Consider buying an annuity for guaranteed income at retirement.
Step 5: Delay collecting Social Security benefits until your normal retirement age or later. You can visit the Social Security website at www.ssa.gov to estimate your Social Security income.
These steps will take you a long way, but remember, each person has unique circumstances that may alter the above steps somewhat. If you are not sure if you are doing this the right way, consult your CPA or financial planner for help in determining what’s best for you. By all means, however, at least make a plan. Don’t wait until you are just a few years away from retirement. You may realize you can’t exist on your savings and end up scrambling to make alternate plans.
– Rumbough, CPA, CFP, is chief operations officer with the Baptist Foundation of South Carolina. Contact her at 800-723-7242. In accordance with IRS Circular 230, any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.