Start saving for retirement while you’re young. It’s easier said than done when you are just starting out, especially if you have student loan payments taking a huge percentage of your paycheck.
First, let’s determine how much you should have saved for retirement by the time you reach the end of your 30’s. Retirement plan provider Fidelity recommends having the equivalent of your salary saved by the time you’re in your 30’s. In other words, if your annual salary is $50,000, your goal should be to have the same amount in retirement savings by the end of that decade of your life.
How do your savings stack up against others your age? The average 401(k) balance for individuals between the ages of 30 and 39 is $50,800, according to data from Fidelity for the fourth quarter of 2020. However, the average employee contribution rate for Americans in this age group is only 8.3%.
One easy way to kick start your retirement savings is by taking advantage of any retirement matching program your employer offers. Those matching funds from your employer can add up fast and help you get closer to your savings goals. Not sure if your employer offers a program like this? If you don’t ask, you could be missing out on a huge benefit to you. Find out the details from your Human Resources Department if you are unsure.
Did you know First Financial has an Investment and Retirement Center which offers complimentary retirement consultations to our members?*
Stop in or call to make an appointment with one of our Financial Advisors today!
*Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and The Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using The Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or The Investment & Retirement Center.
Securities and insurance offered through LPL or its affiliates are:
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