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Retirement Savings and Strategies

Updated: Nov 25, 2022

According to several surveys, working Americans want to stop working by age 62. However, different generations have varying retirement expectations.


For instance, Gen Y (25 – 40 years) plans to retire at age 59, while Gen X (41 – 56 years) wants to retire at age 60 and Baby boomers (57 – 70 years) picked age 68. However, the common denominator of all these generations is they will retire. Hence, this article has top ideas on how to go about retirement savings.

Set a retirement goal today

When making retirement plans, most people fall short. Hence, you have to avoid the same mistake. Estimating how much retirement saving you need is quite tasking. But by setting a retirement goal, you can determine how you intend to meet your goal.


It is advised to pick between 15 to 24 percent of your monthly income until age 65 as a goal. And the earlier you begin, the better the accumulated savings. In addition, an early start will allow you to save using less percentage.


Have a separate account for retirement

Opening an RRSP(Registered Retirement Savings Account) has several benefits. First, several tax and credit incentives are attached to opening an RRSP.


RRSP account will help you grow tax-deferred savings until you make a withdrawal. If your employer offers RRSP plan, you can also apply for it. In addition, it has the potential to save pretax money.


Reduce expenses and automate your savings

Budgeting is key to having well-structured retirement savings. If you can stick to your budget and get extra cash, you can add it to your retirement savings. Additionally, automate your retirement savings.


Firstly, ensure it is included in your budget. Then, you can get a financial service for little or no cost that will send a certain amount of your income to your retirement savings account. You can handle the automation yourself, but it is not often effective.


Conclusion

Regardless of when you plan to retire, your retirement savings is vital to ensuring that you are financially comfortable during retirement.


Appling all the tips above will get you into that comfort zone. However, if you want to make the best of your retirement savings, you should invest them in a reliable stock.


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