Sara Parker, from Utah Central Credit Union, outlines the most important thing you should be doing according to your age.
If you’re curious about Social Security and whether it will be around when you retire, read this thoughtful article in Fortune Magazine, written by senior editor at-large Allen Sloan.
Whether you’re 20-something or looking forward to retiring soon, here’s what the experts are recommending for retirement strategies:
Keep investing. 401(k)s are still a great way to save money for the future. Even if employers have stopped matching funds or reduced their matches an expert at Smart Money magazine suggests that employees make up the difference and keep putting money in that account.
Your tax bracket is probably still climbing so consider a Roth IRA. Better to pay taxes on an IRA now at 25% then at retirement when your bracket could be 35%.
If you’re between 50 and 60 and making 401(k) contributions, there’s a catch-up provision that allows you to pay more than the limit if you’ve not contributed the maximum amount in the past. This is a great way to save for the future.
Postpone retirement as long as you can. For each year a person delays taking Social Security, their monthly check from Uncle Sam increases in value by about 8 percent. In a recent study, T. Rowe Price found that a person who retired at age 66 instead of 62 could increase their retirement income from investments by as much as 40 percent.
Utah Central Credit Union can help with planning for retirement as well as all your financial needs. You can contact them or find the closest branch to you by visiting www.utahcentral.com .