Wednesday, August 7, 2013
Aa recent survey shows only 13% of those questioned say they're confident they'll be able to afford a comfortable retirement. That means 87% of the respondents weren't sure they'll be able to continue their quality of life in retirement.
That's why Angela Colley of Money Talks News says there are several retirement planning mistakes you should avoid. Here is some of that list:
1. Failing to plan. You should be asking yourself how much you have saved and what is your goal amount. Then figure out how much you should be putting aside each month to get there.
2. Starting too late. If you're in your twenties, now is the time to start saving. But even if you're not, it's never too late to get in the game.
3. Not taking advantage of 401(k)'s. If your company offers a 401(k) plan and you're not contributing you're making a big mistake. That money comes out before taxes. And if your company matches your contribution you should take advantage of that ASAP.
4. Relying on Social Security. You can use the Social Security Administration's retirement estimator to chart your benefits. Chances are it won't be enough. The maximum Social Security benefit this year for someone who retires at full retirement age is $2,533, and $1,923 if you take early retirement at 62.
These are just half the retirement planning mistakes in Angela Colley's article. To read them all, click on the link.