Start Saving Money for Retirement

    Are you saving enough of your hard earned money? Would you like to someday leave your 9 to 5 job and maybe enjoy life more? Maybe you'd like to spend more time enjoying life and less time stuck in that stressful job so many of us seem to have?
   
Without exception, retirement planners advise  pitching in as much as you can to your retirement plan. This is especially true if your employer contributes too. If your contributions are made by salary deduction, saving is easier to do and will be  almost painless. Contributing more means postponing, or "deferring," taxes until you withdraw the money at retirement.  When you reach retirement age you may be in a lower tax bracket.
 

    Catch-up provisions for some retirement plans allow you to contribute extra amounts if you're over 50. Information about 401(k) catch-up contributions is available from your retirement plan administrator or on the Internet. If your plan has a catch-up provision, act on it now.

    

    Staying employed as long as possible benefits your retirement finances in several ways. Having an income gives your retirement savings more time to grow. A regular income could mean more regular savings. If you work for a company that provides health insurance, you won't have to fully pay for a policy yourself.

    

    You don't have to stay at your same job if there are other opportunities. Maybe you want a new career, one that ties in to your personal interests. Longer life spans and better health mean many older people have the energy and enthusiasm employers are looking for, not to mention the skills and experience. Many people find the social benefits of working as important as the financial ones.

    The amount of your monthly Social Security benefit goes up the older you are when you start receiving it. For example, a 61-year-old man earning $60,000 in 2009 and eligible for his Social Security benefit at 62 would receive an additional $1,080 a year by waiting 1 year, until he is 63, to collect his benefits. On the other hand, retirees who are seriously ill, who need the money immediately, or who feel comfortable investing their monthly checks may choose not to wait.

In this example, the worker turning 62 in 2010 would have a full retirement age under Social Security of 66. At full retirement, his benefit will be $1,645. If, however, he starts to receive benefits at age 62, his monthly benefit would be reduced to $1,172. By waiting until age 70, his monthly benefit would be $2,281.

     Early retirement can  result in about the same total Social Security benefits over your lifetime, but in smaller amounts to take into account the longer period you will be receiving them.

    If you delay retirement beyond the full Social Security retirement age, you can earn retirement credits, increasing Social Security by a certain percentage (depending on date of birth) until you reach age 70. 

 

      No matter how old you are when you choose to retire,  remember to sign up for Medicare at age 65. If you don't (for example, because you have other coverage) you may be limited on when you can enroll later and may pay more in premiums.

    Want a less stressful, more worry-free retirement?  Focus on saving your money and adding to your nest egg. Investing your savings wisely More saving, more investing, and less spending will boost your confidence and your financial bottom line as you approach retirement!

    Its never too late to start saving your money! Try these money saving tips to help you save a little ( or a lot ) more of your hard earned money!