Courtesy: Social Security Administration
When most people begin their career, retirement is usually the farthest thing from their mind. Instead, they focus on trying to purchase a home, or to start a family or perhaps to save money to travel. Retirement seems so far away for many young people, so they delay putting money aside. However, it’s very important to save for the future — if you want to enjoy it.
An employer-sponsored retirement plan, also known as a 401(k), can be a useful way to set aside funds for retirement, especially if your employer offers matching funds on what you invest. If you don’t work for an employer that offers this type of plan, there are many other plans designed to help you save for retirement.
From solo 401(k)s to traditional and Roth IRAs, there are programs designed to fit a multitude of budgets. The earlier you start saving, the more funds you will have ready for retirement.
In addition to traditional programs, the U.S. Department of the Treasury now offers a retirement savings option called myRA. There’s no minimum to open the account — you can contribute whatever you can afford, and you can withdraw funds with ease. To learn more about myRA, visit www.myra.gov.
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Jane Yamamoto-Burigsay is Social Security’s public affairs specialist in Hawai‘i.