Most People Do Not Have Enough Money Saved for Retirement
Although there are few things certain in life, it’s good to know your New York State & Local Retirement System (NYSLRS) pension is one of them. But your pension is only one part of a good financial plan. That’s why we advocate a well-rounded approach to saving for retirement by considering Social Security and personal savings as well.
Unfortunately, according to a recent Employee Benefit Research Institute survey, most Americans have very little savings set aside for retirement, and many don’t know how much they’ll need later in life. In fact, about 36 percent of workers have less than $1,000 in savings and investments that could be used for retirement. The survey also revealed that only 44 percent say they or their spouses have tried to calculate how much money they’ll need in order to live comfortably during retirement.
The findings underscore the fact that Americans need to start saving to avoid further retirement insecurity.
National Save for Retirement Week
This year’s National Save For Retirement Week is from October 19 – 25. It provides an opportunity for people to review their own personal financial situation and determine if they are on track to reach their retirement goals. National Save For Retirement Week has been held annually since 2006, when the United States Congress adopted a resolution specifically designed to elevate public knowledge about retirement savings.
Groups such as the International City Management Association (ICMA) offer educational retirement resources, including more participatory activities like today’s National Pack-a-Sack Lunch Day. According to the ICMA, you could save thousands of dollars over seven years just by bringing your own lunch to work. Check out ICMA’s Big Savings Calculator to see how you can take steps to save money for retirement just by making fewer everyday purchases.
There are several ways to save for retirement. One savings plan to consider is a deferred compensation plan.
Deferred Compensation Plans Work
A deferred compensation plan can be another source of retirement income to consider when saving for retirement. Deferred compensation is a type of plan where part of your earned income is paid back to you at a later date. The money you set aside is tax-deferred, which means you do not pay federal or State tax on it until you begin to collect it.The New York State Deferred Compensation Plan (NYSDCP) is a voluntary retirement savings plan created for New York State employees, and employees of participating employers. Participants in the NYSDCP have their contributions deducted automatically from each paycheck to their deferred compensation account. They can also choose from different investment options within the plan for their account.
If you work for a local government employer, please check with your human resources officer or benefit administrator to learn about deferred compensation plans.
Start Saving Now
The sooner you start saving, the more time your money has to grow. Check out our Weekly Investment Plan to see how making a weekly investment can grow by age 65. With just a little planning and added effort on your part, you’ll have added security for your retirement years.