Retirement? Resmirement.

I hear this all the time from associates, coworkers, and even elders.

But why?

Why do fewer than half of Americans calculate how much they need to save for retirement?

Why in 2012, did 30 percent of workers with access to a defined contribution plan (such as a 401(k) plan) did not participate?


According to the latest National Retirement Risk Index from the Center for Retirement Research (CRR) at Boston College. That 53 percent of households risk falling more than 10 percent short of the retirement income to maintain their standard of living.


According to the Employee Benefit Research Institute (EBRI), 40 percent of retirees are at risk of running out of money for even their daily needs. To include out-of-pocket spending on health care or long-term care.

Then why are so many people saying “Retirement. Resmirement.”?

When so many people are not making ends meet when they get older.

It just doesn’t make any sense. And it definitely doesn’t make any sense for you either.

Which is why you need to start saving today with these 9 Ways to Come out Ahead in Retirement.


Because it does. Your life when you’re older is on the line, and if you aren’t saving, you can see a considerable drop your quality of life.

Which is why you need to turn saving into a rewarding habit.

The best way to do it:

1. Start small – save a little bit each day, even if it is only the amount of a cup of coffee each day (3 dollars a day).

2. Increase the amount – every month put in more and as much as you’re comfortable with.

3. Save sooner rather than later - the more time your money has to grow, the much larger it becomes. Just think of exponential growth, as compound interest compounds. It very much becomes so much more than what you put in originally. As much as thousands and thousands.

2. Know how much you will need to retire on to maintain your lifestyle or even improve it

Most experts say that you will need at least 70 percent of your preretirement income – or if you make less, 90 percent or more – to live the way you do now when you stop working.

Which means take charge of your financial future, you’re the captain of your destiny.

Therefore Plan ahead by:

1. Establishing how you want to live when you retire

2. Seeing how much money you need to live that way

3. The best ways to invest your retirement to meet those needs such as real estate, stocks/bonds, and businesses

3. Contribute to your Employer’s Retirement Savings Plan

Employed with an employer who offers a retirement savings plan, such as a 401(k) plan?

Sign up immediately and contribute all you can. As it is one the best vehicles to retire through as it lowers your taxes, your employer might price match your contributions , and you can put your savings on autopilot as you can usually have a percent automatically deducted.This is important as the interest compounds and it usually is taxed considerable less than other alternatives.


1. Signup

2. Set-up how your 401(k) is invested

3. Find out how much your employer price matches

4. Contribute

4. Find out if your Employer has a Pension Plan

Find out if your employer has a traditional pension plan. See how you qualify and how it works so you can find the best way to get the most out of it.

This includes:

1. Seeing how much the benefit is worth

2. How does it affect the pension if you transfer jobs

3. See what other benefits your entitled to

5. Consider Basic Investment Principles

Learning to save is learning to invest. Because all your retirement accounts have to be invested into something once you contribute to them. This can include real estate, stocks/bonds, and businesses.

Which is why it’s important to know how to invest it or inflation and taxes will eat away your retirement and savings.


1. Know how your savings or pension plan is invested. Learn about your plan’s investment options and ask questions

2. Diversify your retirement by putting your savings in different types of investments

3. Continue to monitor your investment mix and change it over time depending on a number of factors such as your age, goals, and financial circumstances

6. No matter what happens. DON’T TOUCH your retirement savings

If you touch your retirement now, you will lose principal and interest, as well as tax benefits, and even have to pay withdrawal penalties. That means even if you change jobs. Leave your savings invested in your current retirement plan, or roll them over to an IRA or your new employer’s plan. Just don’t take them out.

7. Ask your employer to start a plan

If your employer doesn’t have a retirement plan, it may be time for them to start one. So suggest a number of the retirement saving plan options available. This can include even a simplified plan that can help both you and your employer.

Such as:

1. Simplified Employee Pension Plan (SEP IRA)

2. Savings Incentive Match Plan for Employees (SIMPLE IRA)

3. Self-Employed 401(k) plan

4. 401(k) plan (better for larger companies given setup costs, administration, fiduciary responsibilities, etc.)

8. Put money into an Individual Retirement Account (IRA)

Once you have exhausted your 401(k) and other investment vehicles. It’s time to set up an IRA which you can put up to $5,500 a year into for even more tax advantages. If you are older than 50 you can contribute even more.

They work much like a 401(k) but have 2 different options. – A traditional IRA or a Roth IRA.

The major difference is in their tax treatment of your contributions and withdrawals.

For example:

Traditional IRAs

· Anyone with earned income, who is younger than 70 ½, can contribute to a traditional IRA

· Traditional IRA contributions are tax deductible on all tax returns for the year you make the contribution, but withdrawals in retirement still taxed as ordinary income with the appropriate tax rate

· You are required to take minimum distributions at age 70 1/2

· Traditional IRAs lower your taxable income in the contribution year

o Meaning: your adjusted gross income is lowered to help qualify you for other tax incentives you wouldn’t normally get, such as child tax credits or the student loan interest deductions

Roth IRAs:

· Roth IRAs have income-eligibility restrictions

· They provide no tax break for contributions, but earnings and withdrawals are generally tax-free

· There are no mandated withdrawals during the owner’s lifetime

· Roth contributions (but not earnings) can be withdrawn penalty- and tax-free any time, even before age 59 ½

9. Ask Questions

Even though these 9 tips gives you a push in the right direction, it is time to get even more information. Because what is available to you, what types of risks you are comfortable, and you’re financial goals is different to everyone.


· Talk to your employer, your bank, your union, or a financial adviser

· Ask questions and make sure you understand the answers

· Get practical advice and act now

· Learn and make choices that fit your goals

Author's Bio: 

Lucas Thomas is a professional. Professional Writer. Professional Speaker. Professional Business Owner.

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