How to Save for Retirement with Just a Few Dollars a Month

How to Save for Retirement with Just a Few Dollars a Month

You may feel like you don't have enough money to save for retirement.

Thirty-three percent of people ages 33-49 have no retirement savings, according to a survey by Bankrate.com. Sixty-nine percent of people ages 18-29 don't either.

If you're wondering how, it’s easy. Just start contributing to your retirement plan at work.

Think you can’t afford to? If so, forget about contributing the max. Instead, just contribute 1% of your pay. The average salary for college graduates is $44,000 a year. One percent of that is just $18.44 every other week. It’s actually less because your taxes go down – meaning you’ll be giving up just $13 every two weeks.

You can afford that!

It might hurt at first to see that $13 cut in bi-weekly pay. But after a few paychecks, you’ll get used to it, and it won’t hurt anymore. When it stops hurting, increase your contribution by another 1%. Soon, you’ll be saving 10% of your pay!

If you think you can’t even do that $13, skip it. Instead,  wait until you get your next raise. When you get it, put half the raise into your retirement plan. You'll see your paycheck go up -- and you’ll be contributing to your retirement.

Get more great tips about retirement planning from our Education Center. And call us anytime – (888) PLAN-RIC – our financial planners are always happy to answer your questions.