Who doesn’t love a deal? My mother grew up during the Great Depression and is the queen of coupon-cutting. She passed that same pursuit of thrifty spending on to me. Of course with the Internet, we can often find a deal simply inputting a code to get a discount or special deal. Often there is a deadline, the next 25 hours, the next week, etc-all intended to motivate us to take action.
While we look for deals on spending, but do we look for deals on saving?
Many Americans have a “deal” waiting for them with their employer sponsored retirement plan. The 2012 Wells Fargo Retirement Survey tells us that 53% of middle-class Americans are not confident they will have enough saved to live the lifestyle they want in retirement, and 30% think they will have to work until they are 80. Taking advantage of the benefits of an employer-sponsored retirement plan can help address some of these concerns. Plans offer tax deferred savings*, easy payroll deduction, and often an employer contribution.
Now, we need a deadline!!! Since retirement is often a long ways out, the sense of urgency to do something right now is often missing. But waiting even a year can have a big impact on what you have saved for retirement.
So, if you aren’t participating in your employer sponsored plan, you may want to think about contributing. If you don’t have an employer sponsored plan, (or even if you do), you may want to consider establishing and contributing to an IRA to help you with your retirement planning goals.
*Withdrawals are subject to ordinary income tax and may be subject to a federal 10% penalty if taken prior to age 59.