Connect with us

Hi, what are you looking for?

Us News

Tips To Use Your Post-Retirement Savings Wisely

Post-retirement life comes with a truckload of financial insecurity. The retirees have a single source of income, and the rising prices of commodities make their lives difficult. The majority of individuals fail to plan their retirement income and fall short of money.

Tips To Use Your Post-Retirement Savings Wisely

Pexels.com

CNBC reports that 45% of retirees are unsatisfied with their savings. Retired individuals must hire a financial planner to manage their expenses and savings. If one doesn’t want to take the help of an expert, then they should employ innovative tactics to optimize their savings.

Save 15 Percent Of What You’re Earning Now

The working individuals should start to save as much as possible. Experts suggest that everyone must hold at least 15% of their annual income for retirement. The reports show that most retirees use up 55% of their pre-retirement income after retiring. The Social Security benefits can add up to 45% of the pre-retirement money. So, individuals should save the remaining 10-15% while they work. However, the rise in living expenses means that saving 15% per year is a tough ask.

Track Your 401(k) Contributions

CNBC quoted Roger Young, a Financial Planner at investment management company T. Rowe Price, who said, “The first thing you can do is start saving as much as you can right now. We recommend saving 15% of your salary towards retirement each year, including your 401(k) contributions and any matching contributed by your employer. As an example, you set up an automatic increase in your 401(k) contribution rate, so every year it bumps it up by 1% or 2%; this way, you can get to that 15% a lot quicker.”

Minimize The Post-Retirement Taxes

Individuals should manage their taxes during the working days to minimize the taxes on their post-retirement savings. Experts suggest individuals open an IRA or Roth IRA with the conventional brokerage such as Fidelity and decide upon the investment based on the plans. The majority of employees are in the 401(k); they need to monitor the portion of salary that goes in the 401(k). Various companies and organizations deduct the contributions before handing over the paychecks. The working individuals need to invest a portion of their savings in a maximum returns scheme. The investment will come in handy during an emergency.

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Us News

The Social Security beneficiaries are worried about the fate of payroll taxes in 2022. Several factors are involved in calculating these taxes, including wages,...

Personal Finance News

As per as.com, more than 169 million stimulus checks were given out to approved Americans in the third round, and some are calling for...

Us News

Credit cards are convenient and yet they are not for everyone. If you are someone who misses payment deadlines, you should avoid credit cards...

Cryptocurrency News

Walmart is the latest big business house to enter the world of Cryptocurrency and NFT. The retailing giant is taking the first tentative steps...

Us News

When it comes to personal finance, the first thing that any expert will tell you is not to earn more, but to save more....

Us News

The US families have received half of the child tax credit payments in 2021; IRS will issue the remaining payments while the parents file...