Retirement savings once allowed Americans to have money to fall back on once they reached retirement age. You paid money into your savings or 401K with each check and the company matched your amount, leaving you with plenty of cash to retire on once the time came. This savings plan has gone out the window for many people, with less than $25,000 in savings for the average worker. It’s time to confront the shortfall that exists and return the plan to its initial intentions.
Take Advantage of Your Workplace Plan
Many workplaces still have a retirement plan in place for their employees, but you get to decide if you want to participate. Some people forgo the plan thinking they can save money now and work on saving on their own later. It is best to take advantage of whatever plan is available so you can start saving immediately. You never know when you could use the money, as several plans allow you to borrow against what you have put in. Many employers also match your contributions, letting you gain a higher payout in the end.
Speak with a Financial Advisor
Individuals looking to make a plan for their future should speak with a financial advisor as soon as possible. The advisor will advise you on the best course of action to take if you want a certain amount of money saved in a particular amount of time. Roth IRAs, solo 401K plans, and other options exist that help you save money for retirement. You can do it on your own without needing a plan through your job.
Consider Adding to Your Health Insurance Policy
A high-deductible health insurance policy lets you make contributions that are tax deductible up to a certain limit. You can invest your funds into this account and use it as a sort of retirement savings as well. It will come in handy for Medicare premiums and health care copays that you will inevitably need to pay as you age. Cover your annual deductible out of pocket to ensure you have more in your account to use later on down the line.
Retirement savings have suffered many shortfalls over the years. They are not as hefty as they once are, and many Americans are left with either a small savings amount or none at all. Take advantage of the options at work and speak with a financial advisor so you can get started on your own savings account. It’s ideal to have a savings set up for your future so you always know you have something to fall back on when needed.
~Here’s to Your Financial Health!