No matter what your full retirement age is, it’s never too late for consumers to start saving early. This in turn, allows them to become financially stable for future endeavors.
Sacramento, CA (PRWEB) January 23, 2012
In a recently conducted CNN Money poll, 45% of consumers surveyed wish to retire before the age of 65, while 27% would prefer to gradually reduce their work load between the age of 55 and 65. Unfortunately, with todays economic down turns and financial crises, most of these consumers won’t see retirement until the age of 80. "Now is the time to start thinking about retirement," forewarns 1st Financial Center.
Though it can be hard, working into ones “golden years” has become a requirement across the nation. Many Americans are not able to save the funds needed to retire by the average retirement age of 64. According to a Wells Fargo retirement survey that polled 1,500 middle-class Americans, those currently in the work force have only saved 7% of the retirement funds they were hoping to accrue. Due to this drought of savings, people are not in a hurry to quit their day jobs.
Financial Debt has also burdened those seeking to retire. Currently the average debt load per household is $15,000. With Americans failing to live within their means, many are finding it challenging to save the funds needed for a financially secure future.
The growing break between actual savings and savings goal is causing many to re-examine their savings plan and develop a financial strategy that will help them succeed. Instead of a concrete retirement age, Americans have come to terms with working the duration it takes to save up enough funds to comfortably retire.
“No matter what your full retirement age is, it’s never too late for consumers to start saving early. This in turn, allows them to become financially stable for future endeavors” states 1st Financial Center’s Chief Adviser. “Saving can be tough, yet the sooner an individual starts a savings plan, the more likely they can retire at their desired age.”
With the IRS recently raising the contribution limit for 2012, people may be able to contribute more tax-free money to their 401K, while maintaining a progressive savings plan. Unlike last year $16,500 maximum contribution limit, the maximum amount that an individual can contribute to their 401K has increased by $500, making the new maximum contribution $17,000. “Individuals need to be cautious. Though the federal limit has increased, an individual plan can still set a lower limit” warns 1st Financial Centers Chief Adviser. This could result in insufficient savings, and eventually send many struggling toward retirement once again.
Despite anticipated market changes, sticking to a well-rounded savings plan can drive Americans to a financially secure future. To learn more about saving options, contact 1st Financial Center at toll free (888) 755-4096 or online at http://www.1stfc.com.