US. Financial Fails in Retirement Planning
Big or small, missteps with our money can harm our financial future. Here are some of the most common financial fails, and how to avoid them.
1. Failing to Save
We used to think of retirement planning like a three-legged stool. Retirees could rely on a pension from their employer, Social Security from the government and their own retirement savings. Those three legs created a nice nest egg. Now, with pensions becoming a thing of the past and the future of Social Security uncertain, it’s more important than ever that we control what we can — and that’s our savings.
I recommend at least 10% to 15% of every paycheck goes to your retirement savings. The easiest way to make this happen consistently is by setting up automatic contributions from each paycheck to a retirement savings account. But don’t stop there. Be sure you don’t just go on autopilot. Bump up your savings rate each year or with each raise. A small increase in your contributions won’t be very noticeable from your paycheck, but it will make a big difference in your balance.
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