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| Are You Taking Steps to Save For Your Retirement Now? |
 admin writes, "It can be difficult to think about planning for your retirement in the early days of your working life as it seems so far away. However, the sooner you start putting some effective retirement plans in place the easier it will be for you to save the funds you need for a comfortable future. With the costs of living rising year-on-year those who do not have a good retirement plan in place could find that they don't even have enough money to pay their bills, let alone the spare cash to enjoy any hobbies or interests when they retire. "
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It can be difficult to think about planning for your retirement in the early days of your working life as it seems so far away. However, the sooner you start putting some effective retirement plans in place the easier it will be for you to save the funds you need for a comfortable future. With the costs of living rising year-on-year those who do not have a good retirement plan in place could find that they don't even have enough money to pay their bills, let alone the spare cash to enjoy any hobbies or interests when they retire.
This can add up to a bleak future full of money worries and stress and you may even find you cannot actually afford to give up work when you want to. There has never been a more appropriate time to start saving for your retirement to make sure you have the money you need.
Step 1: Assess Your Finances
It is important to look at your finances and understand how much you can afford to start saving. Even if you are on a low income or are not currently earning you can still put aside a small amount of money for your retirement. Have portion of your paycheck deposited into a retirement, savings or investment account . . .The best way to save is to make an automatic deduction from your paycheck. For example, Get an immediate tax deduction with a 401(k). If you elect to have $100 directly deposited from your paycheck to a 401(k) plan each month, your take-home paychecks will decline by less than $100 because you are deferring paying income tax on the amount you save. “If you have $100 taken out of your paycheck, tax-deferred, and you are in the 15 percent tax bracket, really, your paycheck will only go down by $85 instead of $100 because of not having to withhold tax on the full amount,” says Patricia Seaman, senior director of marketing and communications for the National Endowment for Financial Education. “Use the tax system to help you get to that $100 without it feeling like that $100 is taken right out of your pay.”
If you have any debt start working towards paying this off as quickly as possible. You cannot save for the future if you have debts hanging over your head and these will eat into your savings if you still have them when you retire.
Step 2: Get Some Professional Advice
The savings, pensions and investment markets are complex and it can be very difficult working out which is the best way to save for the future. Before you sign up to any products or open new accounts make sure you get some professional, independent financial advice. These services can talk through the various options with you and help you to understand the pros and cons. An independent financial advisor will also be able to assist you with setting your retirement goals and planning effective ways for you to achieve them.
Step 3: Shop Around
You need to look at the market and compare the different deals available when it comes to savings accounts and pension plans. Don't just sign up for the obvious or easiest options and instead make sure you do your research and find the very best deals for you. There are some significant differences between the various pension schemes on offer both online and in store and this could dramatically affect your earnings upon retirement. Shopping around and making comparisons is a very effective way to make sure you make your money work hard for you.
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Posted on Mar 13, 2016 10:00am.
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