Many Americans look forward to retirement as a time to pursue hobbies, volunteer, and travel. However, retirement can be stressful if you don't have enough savings to get you through many years without your normal income flow. Most individuals will collect Social Security benefits in retirement, but that is typically not enough and you should be looking at using 401(k) or other retirement plans as well.
401(k) Plan
To participate in a 401(k) plan, you must have access to a plan through an employer. an employee must have access to an employer plan. Employees can usually choose to have a certain amount of each of their paychecks deposited directly into a 401(k) account before taxes are deducted.
Not eligible for a 401(k)? Click here to read about some other retirement savings options.
Want to speak with someone in person about how to start saving for retirement? Call the bank where you have a checking or savings account and make an appointment with a staff member. Or connect with a local nonprofit organization that offers financial management workshops:
New Life Corporation, 221 Dixwell Avenue, New Haven, CT, 203-782-4306
CT Money School (www.ctmoney.org), 860-951-2212