4 retirement resolutions for the New Year
The New Year presents the perfect chance for a fresh start. Many will wisely seize this opportunity with a money-related resolution, but one area people often overlook is their commitment to saving for retirement. According to the Federal Reserve Board, 31 percent of workers have no pension or retirement savings.
To make your retirement-savings resolution successful, it is important to develop specific action items for you to take in 2016. Drawing up a game plan doesn’t have to be hard. Here are some tips that will help get you on the path to financial security in retirement:
- It’s never too early or too late to start saving.
Many people mistakenly believe they are too young or too old to begin saving for the future. Whether you are 18 or 58, working part- or full-time, the time to start saving is now. If you have an employer-sponsored retirement savings plan such as a 401(k), take advantage of it. If a work-sponsored retirement isn’t available to you, your options include myRA, a no-fee starter retirement savings account launched this year by the U.S. Treasury designed for those who don’t have a retirement plan at work.
- Already saving? Increase your contribution rate.
If you are already participating in a retirement savings plan, focus on upping your contributions. Even increasing your regular contributions by one or two percent can make a big impact on your future financial security. You can contribute up to $5,500 each year into a myRA, Roth IRA or Traditional IRA account (or up to $6,500 if you’re age 50 or older). Increasing how much you save, even by a little, is a move in the right direction.
- Don’t miss opportunities for one-time contributions.
Most of us don’t have retirement savings on our mind when we receive a tax refund or overtime pay, but these situations present excellent opportunities to increase your retirement savings account. Save it rather than spend it. In 2016, myRA accounts can be funded with all or part of your tax return. You can also contribute directly to your myRA account from your checking or savings account.
- Make your plan and stay the course.
Make your retirement savings plan and stick to it. Set up automatic contributions from your paycheck or from checking or savings account to help you meet your goals. Consider meeting with a financial planner, or take advantage of free planning resources at mymoney.gov or other reputable personal finance websites. Check your progress regularly to make sure you’re on track to meet your retirement goals. You can sign into your online myRA account at any time, or access it via free apps available in the Apple Store and Google Play.
There are many retirement-savings options available, so research your choices to decide what best meets your needs. The New Year is the perfect time to create your retirement savings plan and stick to it. Learn how myRA works and get more information on how to get started.