Finance & Loans

Saving for your retirement

Saving for retirement should start as early as possible in your career. It’s January and it is the start of the year and a good time to think and start planning for your retirement. There are many vehicles that you can take advantage of saving for your retirement. Many think that you just can’t solely rely on Social security to provide all the money you need in retirement. Even with a pension plan, you may be better served if you save using many of the retirement vehicles available to you.

401(k), 457 (for certain public sector employees), 401(a) and 403(b) for non-profit and teachers are some of the options available to save for retirement. These plans are offered by your employer and there is a yearly contribution limit for each. Some for-profit companies match your contribution to 401(k) plans.

Many types of IRAs are also available for saving for retirement. SEP IRA for self-employed, Simple IRA for smaller employers, regular IRA and Roth IRA are some of IRA vehicles available for retirement savings. As we get older, our healthcare needs require more funds. So, don’t forget to make use of Health Savings Plans that are available to save for medical expenses in retirement.