As Super Bowl fever spreads, we here at Yahoo Finance wanted to put together our own roster of pro retirement tips to help you score big in 2015.
Be a saving superstar
About one-third of American workers have no money saved for retirement, according a survey from the Federal Reserve Board. And of those that are saving, 46% of workers have less than $10,000 saved for retirement and 29% have less than $1,000 saved for retirement, according to the Employee Benefit Research Institute. If you want a winning game plan, you need to start saving, and keep saving.
Know your needs
A Wells Fargo Retirement Survey says 74% of workers expect to continue working even after retirement. And 40% of workers say they plan to work “until they drop,” according to an AARP survey.
So how much should you have in your retirement accounts? Experts say aim to have about 70% of your pre-retirement income to maintain your standard of living when you stop working. To get a better sense of how big of a nest egg you’ll need to build to ensure a comfortable retirement, start with a few retirement calculators to see if you’re on track. AARP, FINRA and Bankrate are good jumping-off points.
Study Social Security
According to the Alliance for Investor Education, 35% of Americans over the age of 65 rely almost entirely on Social Security payments to fund their golden years – and many people mistakenly believe that it will pay for most of their needs.
But the Social Security Administration warns benefits only average about 40% of what you earned before retirement, and suggests supplementing your benefits with a pension, savings or investments.
Make an IRA your MVP
Maxing out your employer-sponsored 401(k) plan and still have some money left over to save? Consider an IRA or Roth IRA, both of which have nice tax benefits. The main difference between the two is that Roth IRA contributions are made with after-tax earnings. But earnings grow tax-free and can be withdrawn tax-free (as long as the account is open for five years and you're age 59 ½ or older). You’re not required to take withdrawals at age 70 ½ from a Roth IRA as you are in a traditional IRA. Both kinds of IRAs limit you to $5,500 in contributions for 2015, and $6,500 for those 50 and over.
The IRS has a handy chart to find out which is right for you.
MORE FROM YAHOO FINANCE
