By Ruth Ahnen
Catch-up contributions can help those over 50.
John and Linda didn’t have a lot of money to set aside while paying the mortgage and raising a family. Now that their kids are grown and the house is paid off, they’re concerned they may not have saved enough to retire in ten years.
Estimating how much money you’ll need in retirement — and figuring out how to save it — can be complex and confusing. Fewer than half of Americans know how much they should be saving, according to LIMRA Secure Retirement Institute.
Most workers are saving too little or nothing at all. Though LIMRA recommends saving a minimum of ten percent of your income annually, four out of five workers are saving less. The average rate of saving is only six percent, LIMRA reports, leaving almost a third of pre-retirees (workers 55-70) with less than $100,000 for retirement. More than a third have less than $25,000.
If you’ve fallen behind, catch-up contributions may help you determine how much money you’ll need for a comfortable retirement, and whether you’re saving at a rate to meet your needs.
It’s never too late to start saving. The key is to set goals, and follow a plan to achieve them.
Let’s start the conversation. Contact Ruth Ahnen, FIC, Modern Woodmen of America. Visit at Suite 310S, 2435 E. Kimberly Road, Bettendorf, IA 52722 or call: 563-508-0842, or 563-508-0842. E-mail ruth.ahnen@mwarep.org.
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