Building and maintaining retirement savings is one of the most important long-term financial goals for many Americans.
Regardless of your personal situation, having a plan for your golden years is a smart move—although getting started may seem overwhelming. Review these tips for taking the first steps to building your retirement savings.
Retirement savings plan
Determine your unique needs
A common standard for post-retirement income is 70% of the annual salary you made while in the workforce. For example, if you earn $50,000 a year, you’d need about $35,000 each year in retirement to maintain your standard of living.
The average retirement lasts about 20 years, so plan to fund at least two decades of post-work life
Review your options
401(k) retirement plans are commonly offered and provide tax benefits. Additionally, many employers provide a partial or total match.
Roth and traditional individual retirement accounts (IRAs) are available from a variety of financial institutions and are relatively simple to set up. These accounts also offer some tax advantages.
Health savings accounts (HSAs) have more specific and limited applications. However, they can help address the often significant cost of healthcare for retirees.
Set your goals and start saving
While you might not be able to save a large amount from each paycheck immediately, getting into the habit of savings for retirement is crucial. You can increase your contributions over time as you’re able.
Using an automatic payment, like a direct deposit into your retirement account each pay period, can help you consistently save.
After you work through this starting list for retirement savings, a financial professional can help you put all the pieces of the puzzle together for a long-term plan.
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UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas. As the company’s reach continues to grow, it also serves business clients nationwide and institutional clients in several countries.
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