Despite a significant share of Americans neglecting retirement savings, it is never too early or too late to start saving. According to a recent survey by the National Foundation for Credit Counseling® (NFCC), 32 percent of Americans are not contributing any portion of their household income toward retirement savings.
To help you prepare for a secure retirement, consider these tips:
1. Between the age of 21 and 30, the cost of education becomes a major hurdle as the long process of student loan repayment begins. Trouble with this debt can put retirement savings plans on hold. Getting help from a nonprofit student loan counselor at this stage can help avoid costly interruptions in growing retirement savings.
2. Building wealth is an essential goal for people between the age of 30 and 45. In addition to retirement savings, homeownership allows people to build equity in their property as they pay down their mortgages. To stay on track, it is wise to get advice from financial counselors through free programs, like the NFCC’s Sharpen Your Financial Focus initiative (www.sharpentoday.org).
3. After the age of 45, it is a good idea to increase contributions toward retirement savings while reducing budget expenses. Downsizing should also include credit card debt. If debt management is a problem, speaking with a nonprofit credit counselor is a good way to identify solutions.
Published with permission from RISMedia.