by Tena Kight

Created on: March 11, 2010   Last Updated: March 12, 2010

The Employee Benefit Research Institute (EBRI) surveyed 1,153 US workers and retirees, ages 25 and up in January. According to that survey, 27% of workers said the total value of their savings and investments were less than $1,000 and 54% said the total value was less than $25,000. That excludes the value of primary homes and defined-benefits pension plans. The percentage of workers who had saved for retirement was down, falling from 75% to 69%. Also, the survey found an increase in the number of workers that postponed their retirement age in the past year.

 Some of this can be attributed to current savings rates, job shortages, mortgage problems and lack of corporate 401(k) matches in 2009’s tough economy. But if you are determined, retirement saving is a real possibility. It's never too early or too late to start saving. Consider these tips to help you get started.

1. Make a plan.

Create a plan that works with your individual situation. Calculate what you can afford to save. Most financial planners suggest saving 6%-10% of your salary. If this isn't a practical number for you now, then begin clearing out debt to make this a real option as soon as possible. Financial security doesn't just happen to the average person. It will take consistency and commitment to set realistic goals, and reach them. Experts estimate the average person will need 70% to 90% of their pre-retirement income to maintain their standard of living. Combine that information with the estimated number of years you might live retired and you have a good idea what dollar amount you're reaching for.

2. Check up on your Social Security Benefits.

You can log on to www.socialsecurtity.gov to get information on our social security earnings. A tax professional can give you options for paying in social security if you are self employed. You need to keep a record of your contributions and check them against the Social Security Administration's records. Mistakes are rare, but they do happen and can be corrected once brought to the SSI’s attention. Many find that SSI alone isn't enough to fund their retirement, so don't count this as total retirement but merely a part of retirement funds. Keep in mind the age you want to retire compared to the age Social Security Benefits will be available to you.

3. Utilize your employer's pension or profit sharing plan.

If you are lucky enough to have an employer offer a tax-sheltered savings plan, such as 401(k), sign up today. This type of savings

• 1
• 2
• Next Page >>