If you’re concerned about your retirement savings, you’re far from alone. According to a recent survey from Wells Fargo, a majority of young adults don’t believe they will ever be able to accumulate the common retirement target of $1 million.
The fact is that few people get rich off of their salaries alone. It’s compound interest – or earning interest on your interest over time -- that makes large retirement accounts possible, and time is on the side of people just beginning their career.
Are you skeptical? Wells Fargo breaks down the math of how a saver starting with a salary of $32,000 at age 25 can reach $1 million in savings by retirement age. And just last week we illustrated how the miracle of compound interest can reward you, and how putting off saving for retirement can cost you big time.
Still need convincing? Check out one of these two simple tools for visualizing your retirement savings and social security benefits:
1. FINRA Retirement Calculator
Created by Financial Industry Regulatory Authority, this handy calculator helps you estimate how much money you need to save each year to accumulate your retirement goal. It even adjusts based on the type of retirement account you use, such as a 401(k) for workplace savings or an Individual Retirement Account.
In plain-English, the results tell you how much you need to invest annually, what your retirement savings will look like over time, and how much you will have in your savings each year.
2. my Social Security Statement
Even if you do not receive government social security benefits, creating a “my Social Security” account with the Social Security Administrator gives you access to lots of valuable information. Your Social Security Statement will give you an estimate of your future retirement benefits or how many work credits you need to become eligible. Create or log in to your account here.
You can also review your earnings over the years to verify the amounts are correct, and the estimated Social Security and Medicare taxes you’ve paid.
Now that you know more about your retirement savings and what you need to be saving, let’s put a plan in place. After all, savers with a plan are twice as likely to save successfully. That’s where America Saves and our pledge comes in. We’ll help you create your plan and keep you motivated with retirement-focused tips, information, advice, and reminders to help you reach you reach your retirement goal. Think of us as your own personal support system.
Two simple tools to visualize your retirement savings: http://bit.ly/2c0xv3n v/ @AmericaSaves
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