Retirement Planning Blog

Recently, the Employee Benefit Research Institute conducted a survey to measure Retirement Confidence of the Americans. According to the survey results, 54% of Americans manage to pool less than $25,000 through their home savings and investment plans. The value of their basic home and other specified benefit schemes is not included in this. The shocking detail is that about 27% Americans can manage only $1,000 in their savings. And, only 11% reported to save over $250,000. Both young and old populace participated in this survey.

After seeing the above results, it has become evident that Americans need to opt for a different pattern for spending and savings in order to have an access to enjoyable living standards. There are various means by which the scenario can be ameliorated.

In case, you are entitled to a 401(k) scheme at work, you must start investing in this. The Bank of America Merrill Lynch believes this would help natives in improving their financial condition.

You are advised to up your investment in 401(k) plan. According to reports, employees invest around 7% of their earnings in a 401(k). However, it is believed that by adding 1 or 2% extra in the 401(k) scheme, you can increase your retirement savings wealth to a dramatic extent.

Another important point is that you must not withdraw your savings amount of 401(k) plan after changing your present job. In case of early withdrawals, you have to pay 10% fees plus tax on the amount that has been withdrawn.