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Saving, not the Lottery, is the Ticket to a Financially Secure Retirement
“The key to saving for retirement is making steady contributions over time,” said
CredAbility offers other tips to help consumers plan for a financially healthy retirement.
Estimate retirement income needs
Even if you have paid off your mortgage, the day-to-day expenses of maintaining your lifestyle can be expensive. You may need 70 percent or more of your pre-retirement income to live comfortably. The
Contribute to employer-sponsored retirement plans
Look into the retirement planning options offered by your employer. Some have pension or profit sharing plans where they contribute on your behalf. If your employer offers a tax-sheltered savings plan, such as a 401(k) or a 403(b) for non-profit organizations, you can contribute as much as
Start your own retirement savings plan
An Individual Retirement Account (IRA) or Roth IRA account can be a great way to save for retirement. You can contribute up to
Remember to pay yourself first
One of the best ways to save for retirement is to make it a priority. Arrange to have your retirement savings automatically deducted from your paycheck and deposited into your account. Each time you get a raise, increase the amount you are contributing until you reach the maximum. As you pay off loans or other debts, continue making those payments into your savings or retirement account.
Reduce Spending; Increase Saving
One of the fastest ways to accumulate money for retirement is to reduce your debt so that you can reallocate those funds to retirement savings programs. If you limit your coffee shop stops to just once a week instead of every day, put the money you save into an account. Bring your lunch to work instead of eating out and you can save
If you still think you’d rather try your luck with the lottery, CredAbility offers the following tips:
- Purchase your tickets from your allocated entertainment budget, which means making trade-offs for a weekly movie out or a couple of at-home rentals.
- Buy only one ticket per drawing or play less often — buying additional tickets does not substantially increase your odds of winning.
- Play only after you have paid all your monthly bills, including more-than-minimums on credit cards, and you’ve put 10 percent into a savings account.
“Think about your financial future and make smart choices,” Glass said. “Over the years, some of the few people who have won the lottery have ended up in even worse financial shape because they didn’t practice sound financial management. Don’t gamble with your financial security.”
CredAbility is one of the leading nonprofit credit counseling and education agencies in
Founded in 1964, CredAbility is a family of
The nonprofit agency is accredited by the