I have a 401(k), and I’m continuously contributing, so I should be alright when it comes to retirement savings…right? This is the mentality of most Americans today. It’s important to know that a 401(k) is only a portion of your financial plan. There was a great article by Regina Lewis in USA Today titled “Use 401(k)s to maximize retirement savings.” Regina points out that there are “5 quick facts about 401(k)s that can help you plan for retirement.” Those facts in order are, “Start saving, Set your contribution level, Boost your contributions, Catch-up on your contributions, and Avoid 401(k) loans.” What some older individuals don’t realize is that “if you are 50 or older, you may be eligible to contribute additional pretax savings through a catch-up contribution.” Not only that, but “some plans allow you to automatically increase the contribution amount each year. This can be a smart way to increase your contribution as you earn more and age.”
It’s important to remember that a 401(k) plan should not be thought of as your only means to retirement. It should be only a part of your comprehensive retirement plan. If you are looking for a retirement specialist near you to discuss various retirement plans, visit Annuity123 today.