10 Ways to Prepare for Retirement

Retiring can be a very expensive so be prepared. The earlier that you start to prepare, the better. Here are 10 ways in which you can prepare for a financially successful retirement:

1. If you are young ask your employeer if they offer Retirement Plans. If they do not offer employees a Retirement Plan then suggest that perhaps they would consider starting one. You can direct your employer to a simplified IRS website or ask that they request a copy of "Choosing a Retirement Plan for Small Business" from the IRS.

2. If your employers do have a Retirement Plan in place then it is your responsibility to learn and check what the benefit is actually worth. Most employeers today do provide an individual benefit statement if you request a copy. If you decide to change jobs then it is vital that you find out what will happen to your pension. For a booklet about protecting your pension go online to the IRS website or write and request a copy of "What you should
know about your retirement plan". This booklet is free.

3. Investigate your Social Security benefits. The average payment for a retiree from Social Security is 40% of pre-retirement benefits. The place to look for this service online is www.socialsecurity.gov.

4. Contribute to a Tax Saving Plan. If your employer has a Tax Saving Plan (401k) sign up and contribute all that you can into it. The benefits of this plan is that your taxes will be lower and over time, tax deferrals and compound interest make a large difference to the money that you accumulate.

5. Start early is the key to a successful retirement fund. The sooner that you commence saving towards your retirement, the better. Learn how your pension or saving plan is invested and devise a savings plan and stick to it. It is never too late to start a Retirement Plan.

6. Invest into an Individual Retirement Account. In this scheme you can put up to $3,000 annually into your IRA which will offer you tax advantages. When you open an IRA you have two options - a traditional IRA account or a Roth IRA account. Look into both of these options as depending on which account you select it can effect your contributions and withdrawals.

7. Basic Investment schemes are highly important as they have proven that how you save can be just as important as how much you can save. If your Pension or Savings Plan is invested it is your total responsibility to understand and question your options as financial security is based on knowledge.

8. When you start a Savings Plan don't touch your investment. If you begin to dip into your money then you will automatically lose principle and interest and even may lose tax benefits.

9. Information is a must, ask questions. Do not be afraid to seek out answers from your employers, the IRS and use any source that is available to you. Speak to your employer, your bank, social welfare and actively participate in seeking the best route for your savings. Knowledge is security.

10.Take advantage of any free booklets, online information, check out the IRS website, check with your union or financial advisor.

There are a number of free brochures available from the following the Employee Benefits Security administration (Tel: freephone 1.866.444 (ebsa) 3273

Saving Fitness: A guide to your money and Financial Future
Women and Retirment Savings
Taking the Mystery out of Retirment Planning

The following websites are very useful:

www.irs.com
www.AARP.com
www.Consumer Federation of America.com
American Savings Education Council

So, take time out to investigate your Retirement Plan. It can be time consuming however it is essential for your financial future. Retirement has been estimated to cost approximately 70% of your pre-retirement income. For lower earners it can be as high as 99% to maintain the standard of living when you cease working. Be sensible, select the best plan with the best financial outcome and stick to your savings.

Saving money for retirement is a habit that you will soon get used to and learn to live without the extra cash
on a daily basis.