Flipping bad retirement saving habits in 2016
Improve your saving habits and reap the benefits.
Are you one of the 39 percent of non-retirees who have given little or no thought to financial planning for retirement? Perhaps you are part of the 31 percent with no retirement savings or pension. These statistics, published in the Report on Economic Well Being of U.S. Households in 2014 by the Board of Governors of the Federal Reserve System, reveal that approximately one-third of U.S. households are not prepared for retirement.
You can improve your savings habits by taking a step in the right direction:
- Sign up for automatic deductions from your pay check. Authorize funds to be deducted directly from your paycheck and have it deposited into your employer savings plan.
- Find out if your employer will match a percentage of your savings plan deposit. Work on increasing the amount of your deposit to reach the maximum employer match.
- Deposit money into MyRa. This is a viable option if your employer does not have a retirement savings plan. Withdrawals can be deducted from your checking account.
- Learn about investing for retirement. It may be easier to invest when you understand the advantages, disadvantages and available investment vehicles. Use nonbiased resources like Extension offices or Local libraries, or noncommercial websites with domain designators of .org, .gov, and .edu.
- Calculate the estimated amount needed to retire. There are many ways to do this. There are online retirement calculators, printable worksheets, and interactive tools. Knowing the amount needed to enjoy a comfortable retirement may inspire you to start saving now!
More savings tips can be found online. Michigan State University educators invite you assess your financial health and visit Michigan State University Extension. In addition, Michigan State University offers money management and homeownership classes. For more information about classes offered in your area visit MI Money Health.