Whether you just started saving for your retirement or have been doing so for years, you should congratulate yourself for having the foresight to plan ahead.
If you haven’t begun a retirement savings program, the time to start one is NOW. The earlier the better, but it’s never too late to start saving for your future.
Even though you may be well on your way with your retirement savings program, when was the last time you gave some thought about whether you will have saved enough to ensure your standard of living during your retirement years?
Many people save for years without really knowing whether they’re saving enough. Over time, a few more dollars contributed to your retirement savings plan each month will make a dramatic difference by the time you retire. But how do you determine how much is enough?
Retirement planning experts generally agree that individuals will need at least two-thirds of their final annual income to retire comfortably. This amount could be more, depending on a person’s income level, marital status, and number of dependents, among other factors.
While traditional sources of income — pension and Social Security — will provide some retirement income, in all likelihood it will not be enough. Retirees will have to rely on savings to fill this gap. Therefore, your level of savings are crucial in ensuring that you can enjoy a rewarding retirement.
The amount of savings needed to supplement one’s pension and Social Security during retirement will vary from person to person. However, if you’re part of the NACo Deferred Compensation Program, or if you're considering it, you have an easy way to find out the level of savings you’ll need.
Using some new sophisticated software, your PEBSCO representative (PEBSCO is the company that administers the NACo Deferred Compensation Program), can sit down with you and within minutes calculate the amount of savings you’ll need by the time you retire.
The software takes into account a number of factors, including your county’s pension plan, estimated Social Security payments, additional investments and sources of income, inflation, and retirement age. Once your level of savings is determined, the software can project the monthly contribution you’ll need to make to your deferred compensation account to get you to your savings goal.
All you need to do is to make an appointment with your PEBSCO representative. This service is free. By doing so, you’ll be ensuring a brighter future.
(NACo Services News was written by Fred Zeldow, financial marketing analyst.)