Retirement may or may not be in your near future, however it should be something you are preparing for today. Many experts believe that being able to save money for your retirement is even more important than paying off your credit cards and/or having an emergency savings account available in case you have unexpected bills, like hospital bills, car problems, etc. However, only a little over half of working adults ages 26-40 are contributing to IRAs. So let me tell you some ways to save money to fund your retirement accounts, as well as choose which retirement account best fits you.
Ten to twenty percent of your income should go to saving for retirement. If you are closer to retirement, you need to be saving a minimum of 20%. If you are younger, I still encourage you to save 20% for retirement if at all possible. If you save money now, it will work for you and increase greatly over time, leaving you with a nice retirement in the future.
Not all of your retirement money has to come from you. There are many employers that offer a matching program. For each dollar you put into your retirement account (usually a 401K), they will put in up to a dollar as well, up to a certain amount. Find out what, if anything, your employer offers, and make sure that you are contributing enough to receive the maximum contribution from your employer.
Take your tax rebate from the government this year and add it to your retirement account. If you don’t have a retirement account, start one. As you get raises throughout your lifetime, add the money from the raise into your retirement account.
There are many kinds of retirement accounts. One type is a Traditional IRA, which is funded by money before taxes. When the money is withdrawn, it’s taxed as income. For those under 49 years of age, $5,000 can be contributed each year. However, $6,000 can be contributed by those ages 50 and above.
A Roth IRA is another option. This is made up of contributions after taxes, so generally when you take your money out of this account it will be tax free.
Most banks will allow you to fund your retirement accounts by automatic withdrawl. Sign up for this option at your bank so that the money goes automatically into this account each month, and doesn’t accidently get spent or forgotten about.
For business owners, primarily small business owners, look into an SEP IRA for your employees. Everything you put into this account is tax deductible. It allows you to contribute money to your employees’ IRA instead of to a pension fund.
In today’s failing economy, it’s extremely difficult to manage one’s finances and find ways to save money. But this makes it more important than ever to plan for your future and retirement. Begin saving whatever you are able today, to guarantee yourself and your family a better future.

Author's Bio: 

Gina Clark writes on financial issues. Click here to learn additional ways to save money and manage your personal finances.