by Effie Moore Salem

Created on: August 17, 2010

It is hard to know how much is enough when saving for retirement, but a good rule of thumb is to save as much as is possible. That may not be adequate but it will have to do. It is better than saving nothing at all, and a good portion of those employed do just that. Through no fault of their own, possibly. Saving for college education for their kids, meeting the high cost of health insurance and just daily meeting mortgage payments quickly eat up all available income.

Retirement  however is important, but is not something that should take away from the beauty of day to day life. Old age is not ours until it gets here and while it is majestic to view it as a golden time when all caution is thrown to the wind, and adventures postponed throughout life will finally be the way to go, it probably will never happen as the dream picture of it is painted.

The dreams of retirement  served their purpose in their time and it kept employees working and planning. Most people when younger are unaware how life sometimes works. Yet the purpose of their plans for retirement worked for them by  keeping them working and dreaming of a glorious old age. Life seldom works out as planned. The omnipotent Creator holds the key to the future of everyone.

Why then save for retirement? It is right and honorable and preferable  to be prepared for whatever life throws at us at any age, and when old, life throws much. There are several possible answers: What one dreams of doing when younger is not always the preferred lifestyle of the elderly. Exhausting vacation trips around the world while exciting when younger, may not appeal to the time weary when the time for fulfilling them comes. Many retirees prefer staying put and finally being able to garden, meeting with their dear friends now and then, and taking life easy, writing and just resting after a life well lived.

 All of this still needs money, and oftentimes, lots of it especially if illness strikes, but that is no reason to become neurotic about stashing away money for retirement. Save what you can and don't worry over it what you can't do. Life is never static and one age slowly blends into the next one seamlessly, and without any visible demarcation lines. This is how it should be. Concerns about money should never be allowed to usurp positive life styles and to stymie day by day coping skills.

Is work related savings accounts the answer to retirement? This is the way most workers save for retirement, although the recent downsizing of the economy makes it imperative that employees learn more about their company's retirement plans. Surely they will want to know how secure it is. Amy Feldman of Business Week sets out to educate employees about the 401k plans of the future. She uses Brightscope as a measuring tool that employees can use to understand more about their work related savings plan.

Some hints as to how they were affected by the depressed economy: (Ratings are  based on the top five investing companies in retirement plans, Vanguard, Fidelity, Pimco,Vanguard Primcap Fund, Fidelity Contrafund.) On the average, these funds shrank 27%. Check around to see how these funds are managed and act accordingly. No longer blindly put your trust in a savings account that may no longer be what it once was believed to be. It makes sense, as well as cents, to understand that when a company goes bankrupt, so do their employees savings.

Be smart about saving for the future and calculate loosely what will be needed. If there is no way you can afford that much without forsaking your present comfort, then trust in your ability to meet whatever obstacle comes your way.

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