10 ways to prepare for retirement in the US

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Financial security in retirement does not come by itself. It requires planning, attention and money.

Facts
• Less than half of Americans calculated how much they need to save for retirement.
• In 2014, 30% of private industry workers with access to a retirement plan with certain contributions (for example, 401 (k)) did not use it.
• The average American lives about 20 years retired.

Putting money off for retirement is a habit that you can live with. Remember: saving money is important!

1. Begin to postpone, continue to postpone and stick to your goals.
If you are already saving money - for retirement or another purpose - continue to do so! You know that saving money is a good habit. If you are not postponing yet, it's time to tackle it. You can start with small amounts, if needed, and try to increase the amount to be deposited every month. The sooner you start saving money, the more time they will have to grow (see chart below). Make saving resources for pensions a priority. Develop a plan, stick to it and set goals for yourself. Remember, it is never too early and never too late to start saving money.

2. Know your retirement needs
Pension is expensive. Experts estimate that you will need at least 70% of your pre-retirement income (for those who earn less, 90% or more) to maintain their standard of living after you stop working. Take control of your financial future. The key to guaranteed retirement is pre-planning. Start with Savings Fitness: A Guide to Your Money and Your Financial Future, and for those who are already closer to retirement, with Taking the Mystery Out of Retirement Planning.

3. Take part in your employer's retirement plan
If your employer offers a retirement plan with certain contributions, such as an 401 (k) plan, subscribe to it and contribute everything you can. Your taxes will be lower, your company may be involved in any way possible, and automatic contributions simplify the procedure itself. Over time, the interest on interest and the deferment of taxes will begin to be felt in the amount collected. Learn about your plan. For example, how much you will have to pay to get a full payment from your employer, and how long you will need to support this plan in order to receive money.

4. Learn about your employer's pension fund.
If your employer has a traditional retirement plan, see if you fall under it and understand how it works. Ask for your individual benefit report to understand how much your benefit offers. Before you change jobs, find out what happens to your retirement benefit. Find out if you are entitled to benefits from a previous employer. Also find out if you are entitled to benefits from the plan of your spouse. For more information, request What You Should Know About Your Retirement Plan.

5. Consider basic investment guidelines
How you save money is just as important as the amount you save. Inflation and the type of investments you make play a major role in how much you save for retirement. Understand how your savings or retirement plan is invested. Learn about your plan's investment options and ask questions. Divide your savings between different types of investments. This diversification will increase your chances of reducing risk and improving returns. Your investment mix may change over time depending on a number of factors, such as your age, goals and financial circumstances. Financial security and knowledge go hand in hand.

6. Do not touch your retirement savings
If you take away your retirement savings now, you will lose the amount and interest, you may also lose tax benefits, or you will have to pay a penalty for exiting the program. If you change jobs, leave your savings invested in your current retirement plan or transfer them to an individual retirement account (IRA) or a plan of your new employer.

7. Ask your employer to create a plan.
If your employer does not provide a retirement plan, ask him to create it. There are several options for pension plans to save money. Your employer may be able to establish a simplified plan that will help both you and him. For more information request a copy. Choosing a Retirement Solution for Your Small Business.

The benefits of an early start. Get started now! This chart shows how much money you will save for 5, 15, 25 and 35 years if you save $ 5 500 per year at 7% per annum.
Photo: United States Department of Labor

8. Save money on an individual retirement account (IRA)
You can deposit up to $ 5 500 per year to your individual retirement account (IRA) or even more if you are older than 50 years. You can also start with a smaller amount. Such accounts also imply tax benefits.

When you open an IRA, you have two options - traditional or Roth IRA. Taxation will depend on which option you choose. In addition, the “net” value of your withdrawals will depend on the inflation and the type of IRA you choose. Such accounts make it easy to save. You can set them up so that the amount is automatically withdrawn from your current (or savings account) and placed on the IRA.

A new type of Roth IRA is called myRA - this retirement account was created by the US Treasury to help you save for retirement if you do not have access to such a plan at work. For more information, go to myRA.gov.

9. Learn about your social security benefits.
Social Security pays benefits on average about 40% of what you earned before retirement. You can calculate your payout using a retirement calculator at Social Security Administration's Website. More information is available on the website or by phone: 1-800-772-1213.

10. Ask questions
These tips will only point you in the right direction, however you will need more information. Talk to your employer, bank, your union or financial advisor. Ask questions and try to figure out the answers. Get practical advice and act immediately.

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