Retirement saving tips
Sure, you’re a young hot thing now (yes, you’re hot because you’re a frugalista), but are you stashing cash for when you’re a silver fox? Every year, I save about six percent of my income in my company’s 401(k). The company matches three percent of that. On my salary, that’s about $3 per year, but every little bit helps. 
Just jokes. Seriously, you should be saving as much as you can for your life at 65+. I get the social security statements in the mail. They freak me out. Mine said that my retirement age is 70 years old! Trust, I won’t be fire chasing at 70. No way. I’ll be in South America, enjoying my years!
I’m going to make it my goal next year to save at least one percent more for retirement. It can’t hurt, right? I need to ramp it up way more. This blog post by US News & World Report’s Emily Brandon talks about the need for women to take retirement very seriously. Our longer life expectancy coupled with our lower incomes can be a problem in our senior years. Here are some retirement tips for folks in their 20s.
Here is a retirement calculator I ran across on msn. You can plug in the numbers to see how long your money will last in your old age.
Are you saving for retirement? If you are, are you using a 401(k) or IRA? If you aren’t, what’s holding you back? How old do you want to be when you retire?
10 Responses to Retirement saving tips
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I am saving for retirement and I am saving 6% as well and my company matches the 6%. I also have my personal savings which I try my best not to touch. I would love to retire from the work force around 33..LOL but seriously that is the age at which I would like to feel very comfortable with my finances. I think I am ok now but I want to feel great knowing that I wouldnt have to work another day if I didn’t want to. Ambitious I know..lol
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We currently save ~20% of our income (401k and IRA). Hubby says he wants to retire at 55 but I’d like to be financially independent well before then. Right now I’m putting extra toward the mortgage so that can be paid off before retirement. In the next year or so, I plan on adding taxable investments to our portfolio as well.
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I use a retirement savings combination of my 401 (k), a ROTH IRA, and two mutual funds (conservative allocations). I only use a charge card like American Express (where you have to pay your bill in full at the end of the month), and put my monthly freelance income into my regular savings accounts. I also own my home and do not touch the equity in it. I also have life insurance (for me and my spouse) and a good health plan.
The key in effective retirement planning is keep your debts low (mortgage, car loan), boost your savings every quarter, and find long-term, conservative, lower risk plans.
Could I do better? Of course I could. Everyone could.
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My husband and I both contribute 6% to our 401ks and have plans to open ROTH IRAs by year’s end to take advantage of the $5,000 max contribution for this tax year. I get a $0.50 match up to 6% and he gets a $1 for $1 match up to 6% plus a 1% bonus for tenure (man I’m jealous!). We originally wanted to retire when I will be 55 and he 59, but realize we’ll need to work a little longer due to a potential lack of health care coverage (we’re still investigating this and any insight would be greatly appreciated). We’re trying to increase our savings steadily each year until we’re completed maxing out both the ROTHs and our 401ks, but we are working on our emergency fund and paying off the rest of our consumer debt (2 more CC’s to go!) first.
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Right now I’m contributing 5% while my company matches 5% plus an additional contribution amount up to 3% of my salary. While I have just 42 years to go before retirement(65 or less), for now, I think I’m okay. Over the next six months, I will increase it a percentage or two.
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I’m like savvy in that I’d like to be independent long before I’m 55. I’m already in my 401(k) and have what I’d call a decent, but not sizeable IRA. I also need to move my old 401(k) and roll it into my IRA. In all, I have about 40 grand saved for retirement.
This year I did pull back the percentage that I’m putting into my current 401(k) from 15 percent to six percent. That’s because a) I need the extra cash to pay down debt and b) my company’s match ain’t such a great deal: they pay the match in stock and the shares are in the toilet.
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I used to put in 20% into my company’s 401K plan (They match 50% of the first 6%) because I was living in a relative’s home and was able to do so. Once I purchased a home, I decreased the amount to 10%. Then I took a new job with a sizable raise and now contribute 15%. I’m a single mother in my mid 30′s and not only worry about my retirement but future college costs and the economy as a whole. Luckily, I seem to have chosen a good career and I have never been laid off (or fired for that matter) and my skill set is in demand.
I love this blog but wish there was one like it that could give me tips on things to do in chicago for free/very little. So far, I really enjoy the free days at the museums and I use restaurant.com certificates while eating out. I find that these, when used properly, can be a great deal, especially when they are on sale. I was able to purchase a $25 certificate for $2 once for China Grill on Michegan ave.
Keep up the good work and if you have any advice on how to save money in the Chi, let me know!
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Lisa, you might try looking for some Yahoo groups in your area that are of interests similar to yours. Or browse other blogs to see if there’s something like that out there.
And personally, I went to debtadvice.org, to see if I can get on a better plan to get rid of my credit card debt. If it works out, I’ll let you-all know.
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Product Junkie Diva:Retired by 33? You will end up moving into a Sephora store.
Savvy: There’s a reason your name is Savvy!
Still Broke:Sounds like you are doing fine!
Tameika: Sounds like a great plan. Did you and hubby work on it together or get outside help, like a financial planner?
Kiauna:Nice benefits! Is your company hiring? (I kid, I kid)
$ out of $.15: You have $40k saved up? Can I borrow a dollar?
Lisa: What’s up homegirl! I’ll research the fun stuff to do in Chi-town. I call up some of my friends.
GLM:Good advice for Lisa. Maybe an urban meet up group, too? And let us know about debtadvice.org.
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Actually we came up with this plan after taking advantage of all the great and FREE advice available on the web (like your savvy self and other PF blogs), TV (Suze Orman, CNBC, etc.), and any Pf books we find at the library. I just can’t understanding paying someone to tell me information that I can research myself. We appreciate your blog and advice! Keep up the GREAT work! You’re a real inspiration for us on how to “trim the fat” on our budget.
Maybe when our investments get a bit more complicated (kids and 529s, larger balances, closer to retirement, estate planning, etc.) we will consider consulting a paid consultant, but for now we are doing fine with all the FREE advice! Thanks again!
Product Junkie Diva