While saving for retirement should be a year round commitment, National Save for Retirement Week is a great time to review your existing retirement plan to make sure you are on track to retire comfortably. If you don't have a retirement plan in place, begin planning and saving now for the retirement lifestyle you envision.
Did you know?
- You may need 70 – 100% of your existing salary to maintain your current lifestyle in retirement.
- Your retirement could last 20 years or more.
- Less than half of U.S. workers have completed a retirement needs calculation.¹
- For the average worker, Social Security supplies only about 40% of retirement income. The rest is up to you.²
How much will you need to retire comfortably?
|Pre-Retirement Salary||Annual Retirement Income Needed*||Years in Retirement|
*Represents 80% of pre-retirement salary.
Consider the tax advantages when saving for retirement
- Traditional IRA contributions grow tax deferred until you withdraw the funds.
- Traditional IRA contributions could be tax deductible depending on your adjusted gross income.
- Roth IRA earnings are tax free after your account is 5 years old and you have reached age 59½.
- Pretax employer plan contributions grow tax deferred until you withdraw the funds.
Contact a Waddell & Reed financial advisor to review your retirement plan or to begin planning. In the meantime, review these resources:
1 Source: Retirement Confidence Survey, Employee Benefit Research Institute, 2015.
2 Source: Social Security Administration, SSA Publication No. 05-10035, 2015.
We take your journey seriously and we'll be there every step of the way.
Your journey, goals and plan are our commitment.Find an Advisor
Withdrawals of earnings in your Roth IRA prior to age 59½ and before the account is 5 years old may be subject to a 10% early withdrawal penalty.
Withdrawals from a qualified account prior to age 59½ may be subject to a 10% early withdrawal penalty and will involve the payment of federal and/or state taxes. Withdrawals from a qualified employer sponsored retirement plan between ages 55 and 59½ may be exempt from early withdrawal penalties. See your tax advisor.
Investing involves market risk, including possible loss of principal.