In an effort to educate the public on the importance of saving for retirement, this week has been deemed National Save for Retirement Week. Here are a few ways you can prepare for life after career:
- Calculate your retirement needs. Experts say you’ll need at least 70 percent of your pre-retirement income to maintain your standard of living.
- Start saving early. The earlier you start saving for retirement, the better off you’ll be when you reach retirement age.
- Contribute to your employer’s retirement savings plan. Automatic deductions make it easy, plus your taxable income will be lower and your employer may match what you contribute.
- Don’t take a taxable distribution. Withdrawing from your retirement savings early triggers a hefty tax penalty, meaning you’ll lose a chunk of what you worked so hard to save.