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 3349 have no retirement savings, according to a survey by Bankrate.com. Sixty-nine percent of people ages 1829 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 percent of your pay. The average salary for recent college graduates is $50,000 a year. One percent of that is just $19.23 every other week. It’s actually less because your taxes go down  meaning you’ll be giving up just $15 every two weeks.

You can afford that!

It might hurt at first to see that $15 cut in biweekly 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 percent. Soon, you’ll be saving 10 percent of your pay!

If you think you can’t even do that $15, 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 at (866) PLAN-EFS — our financial planners are always happy to answer your questions.