How to Save Enough Money for Retirement
Many people tend to see retirement planning as a looming nightmare or a distant dream. Nobody wants to run out of money in their seventies, and the question that always lurks around the corner is “How much money will I need?”. 

For those in their 20s or 30s, things are simple – start saving right know and you’ll manage to save enough for your retirement without going broke. If you’re putting this kind of financial planning off, you’ll fall far behind. Even it may seem impossible to make room for retirement fund payments besides your savings, bank loans, and fixed monthly costs, there are ways to start saving without making drastic lifestyle changes. 

1. Think about your retirement needs
You can’t plan your retirement savings properly if you don’t know how much you’ll need. What kind of lifestyle would you like to have after you retire? If you wish to maintain your living standard after you stop working, you’ll need about 90% of your preretirement income. On the other hand, about 70% of would be enough for a comfortable life. Take control of your financial future, start planning ahead, and take every advantage and financial benefits that your country offers. Australians, for example, can take and age pension income test to see whether they’re eligible for submitting a claim for Age Pension. For those who don’t know, Age Pension is the main income support payment for those aged at least 65 years and 6 months. 

2. Make saving a habit
If you’re saving already, keep on doing it. If you’re not saving then start as soon as possible, and you’ll find the habit to be highly rewarding. Don’t try to start big, just start putting small amounts of cash on the side, and increase it whenever there’s a chance to. It’s never too late to start saving, and if you start saving in your mid-20s, you can be a millionaire before the age of 70 if you only save $15 per day along with the benefits of compound interest. Set goals, make plans, make saving a habit, and don’t fall off track. 

3. IRA (Individual Retirement Account)
There are two types of IRA – traditional IRA and Roth IRA. The point is that Individual Retirement Accounts provide certain tax advantages, while the tax treatment of your retirement contributions and withdrawals depend on the option you selected. Up to $5,000 can be put up into an IRA account each year, or even more if you’re more than 50 years old. IRA can be set up to deduct a certain amount of money from your checking or savings account automatically, and deposit it in your retirement account. 

4. 401(k) match 
If your company offers a 401(k) match, you should know that it’s basically free money. It is a retirement savings plan that’s sponsored by your employer, which lets employees save and invest a piece of their earnings before taxes are taken out. Any amount of contribution you put towards your 401(k) will be matched up to a certain amount by your company. For example, if you choose to put 7% of your monthly earnings into a 401(k), your employer will double your contribution by putting in that same amount as well. However, the terms vary widely, and your employer may choose to use a generous matching algorithm or not to match your contributions at all. 

5. Don’t tap into your retirement savings account 
By spending your retirement savings now, you will lose principal and interest, as well as your tax benefits, eventually having to pay withdrawal penalties. Me sure to leave your savings invested in your current retirement plan or roll them over to your new employer’s plan or an IRA (in case you change employers or jobs. 

How much should you save? The answers may vary, but to put it short – save as much as you reasonably can. Some financial experts advise us to save at least 15% of our income, which is a good benchmark, but it really depends on different factors: what kind of inheritance you may get, how long you hope to work, and many other facts you can’t really know at the time. Start small, increase your savings a bit more each year, and take every financial advantage offered by your national financial system and employers.

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