With all of the financial issues facing most Americans today, the idea of early retirement may seem completely out of reach.
In reality, even retiring on time can present a challenge for many, considering the alarmingly low rates of retirement savings the average American has put away. Many find themselves looking forward to relying solely on Social Security benefits, which are unlikely to provide more than the barest sustenance-level income post-retirement.
RELATED: WHERE SHOULD YOU CONSIDER RETIRING?
Investment in your retirement represents a critical step in planning for your future. Many companies provide 401k plans, which you should absolutely take advantage of, particularly if your employer does any kind of contribution matching. If they don’t, it’s relatively easy to establish an IRA or Roth IRA account to take care of your retirement investing yourself.
Many Americans don’t even know how much they will need to have set aside for retirement. Without a clear goal in place for retirement savings, achieving that goal of a comfortable retirement becomes nearly impossible. $100,000 may sound like a lot to many Americans, but even the most frugal of retirees won’t make it more than a few years on that level of savings.
The good news is that saving for retirement isn’t difficult. Even a small investment each paycheck can make a huge difference over the long-term. The internet presents countless resources for calculating retirement needs, something everyone should take advantage of to estimate how much they will need to have saved for retirement, and how much they’ll need to invest along the way to meet their goals. Trimming a few unnecessary expenses and putting the extra money into your retirement account can make all the difference when the time comes to enjoy your retirement.
RELATED: THESE RETIREMENT STATS MIGHT SCARE YOU!
Take a look at the below infographic and see how you compare to the retirement savings of the average American, and for a few tips on how to improve your chances of a comfortable retirement.
Special thanks to contributing author Megan Wells, Financial Data Journalist at InvestmentZen.com.
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