The rising cost of student loan debt may influence how you secure your financial future. Student borrowers could end up with less savings if they pay off their student loan debt expediently. Prioritizing student loan repayment over retirement is a risk because retirement contributions are usually tax deductible.
The cost of retirement has never been higher. Retirement planning before age 30 is highly recommended and before 40 is essential if you want to have an adequate balance between liquidity and assets later in life. The benefit of working with a retirement plan consultant is that you can take the guesswork out of retirement planning.
If your employer is a retirement plan sponsor, you’ve probably received information about your retirement plan, including descriptions of all the investment options available to you. Why do retirement plans offer different options?
Many people have different options to save for retirement. Virtually anyone can open an individual retirement account (IRA) and start saving. Many other people have access to a 401(k) plan through their employers. So which option is best for you?
If your employer is a retirement plan sponsor that offers access to a 401(k) plan, you should be taking advantage of it to save for retirement. 401(k)s offer significant advantages to workers, such as the ability to save on a tax-deferred basis and often, employer savings matches. However, most workers today will change jobs several times during their careers.
Many people who are saving for retirement haven’t taken the time to figure out how much they may need when they retire. Financial planners who do pension consulting point out that saving without a goal could leave you in trouble when you reach retirement. After all, how do you know if you’re saving enough if you don’t know how much you may need?
Sometimes people are surprised to find out they owe taxes on investments in their “tax-free” retirement accounts. It’s not common, but pension consultants note that it can happen.
Retirement is a whole new phase of life. You’ll experience many new things, and you’ll leave other things behind. One thing that won’t disappear, however, are taxes. If you’ve followed the advice of retirement plan consultants, you’re probably saving in tax-advantaged retirement accounts, like 401(k)s or IRAs.
Educating plan participants is one of the many duties of pension consulting firms, but many focus on accumulating and building wealth while plan participants are working. While that’s important, it’s also important for participants to consider what happens after they retire.
Frequently, the news about retirement is pretty pessimistic. Pensions no longer exist for most workers, we aren’t saving enough, and Social Security is going to disappear. However, things may not be as bleak as they are often painted. If you’re a retirement plan sponsor, you may be wondering how you can help your employees prepare for retirement.