Having a retirement plan in place is fantastic, but adding to it is crucial to building a bigger savings balance. It can be hard to set aside money each pay for something that you don’t use today. It can be even harder to increase that amount over time. I suggest not only getting into the habit of doing that each and every year, but doing it in little increments so that it is easier to adjust to. Make a note to increase your retirement savings deferral every January before you get that first paycheck. Then when you receive your first paycheck, you can plan your spending around the net amount.
The latest research indicates that most people need to save between 10% and 15% of their income. That can be a big number. Medical costs continue to increase by leaps and bounds. And retirement brings a need for more medical care. The bottom line is that having more saved is always a better option.
Take time today to increase your salary deferral. It will make a difference.
Growth of Retirement Savings
Author: Nancy D. McKee, CFP®, Allegheny Financial Group, February 2017
Allegheny Financial Group is a Registered Investment Advisor. Securities offered through Allegheny Investments, LTD, a registered broker/dealer. Member FINRA/SIPC. The above comments are provided for discussion purposes only and are not meant to be an offer of any specific investment or tax advice.