According to the United States Department of Labor, creating and sticking to a plan to save money is the most important step in preparing for retirement. Successful retirement requires planning, commitment and stable finances.Know More
According to the United States Department of Labor, retirees need at least 70 percent of their pre-retirement income to maintain their standard of living after they stop working. Putting a set amount of money into a savings account each month is an effective way to start saving for retirement. The Department of Labor strongly advises workers to leave their retirement savings untouched until they retire; withdrawing the money early can cause a loss of interest or tax benefits.
Money can be put into an Individual Retirement Account, or IRA, which can provide an easy way to save for retirement. If an employer has a retirement savings plan, such as a 401(k) plan, an employee may want to sign up and contribute to it as much as possible. Compound interest and tax deferrals can cause money to accumulate over time. Each plan is different, so a potential retiree may ask his employer for details before signing up. An employee may also ask about an employer's pension plan. A retiree also has access to Social Security benefits, which are on average 40 percent of what was he earned before retiring.Learn more about Financial Planning
A 403(b) retirement plan is a defined contribution plan, similar to a 401(k), used by certain kinds of nonprofit and other tax-exempt organizations, according to CNN Money. It allows employees to invest pre-tax money for their retirement through payroll deductions.Full Answer >
The U.S. Internal Revenue Service describes 403(b) retirement plans as plans that allow an employee to defer a percentage of his pre-tax income into an account where taxes remain deferred until distribution. These plans work similarly to the 401(k) plans offered by for-profit organizations, but 403(b) plans are only available to employees of public education systems, churches and tax-exempt charities and non-profits.Full Answer >
Depending on eligibility, UPS employees can earn a pension plan that allows individuals to retire at age 55 after 10 years of service with the company. Additional retirement benefits include discounted stock purchase options and a 401(k) with the potential for a company match of contributions.Full Answer >
A 414h retirement plan is a tax-deferred government retirement plan. It is a money purchase initiative in which government employers mandate employee contributions, which are then “picked-up” by the employer to be formally characterized as “employer contributions.”Full Answer >