Tampa Insurance Solutions: 10 simple steps to save for retirement.

Your parents might remember when companies included pension plans in their compensation packages and employees could look forward to receiving a percentage of their salaries for the rest of their lives.

Unfortunately, the booming population coming of retirement age has changed all that. Now, the responsibility for providing for retirement income has largely shifted away from the government and employers to individuals.

No longer can you rely solely on your Social Security benefits to offset the cost of living.

Retirement planning can be a difficult undertaking. Where and when do you start?

At Accurate Insurance Solutions, Tampa's Benefits Consultants, we came up with 10 basic steps you can take that will allow you to save for your retirement. (For a much more detailed version download our guide at the bottom of the page, 10 things to know about planning your retirement)

Retirement Needs

Retirement is expensive. Experts estimate that you’ll need about 70 percent of your pre-retirement income (90 percent or more for lower earners) to maintain your standard of living when you stop working.

Social Security

Social Security pays the average retiree about 40 percent of pre-retirement earnings. Call the Social Security Administration at 800-772-1213 for a free Social Security Statement.

Employer's Pension Plan

If your employer offers a plan, check to see what your benefit is worth. Most employers will provide an individual benefit statement if you request one.

Before you change jobs, find out what will happen to your pension. Learn what benefits you may have from previous employment. Find out if you will be entitled to benefits from your spouse’s plan.

For a free booklet about protecting your pension, see the Department of Labor’s article "What You Should Know about Your Retirement Plan."

Tax-Sheltered Savings Plan

If your employer offers a tax-sheltered savings plan, such as a 401(k), sign up and contribute all you can. Your taxes will be lower and your company may kick in more. Automatic deductions from your paycheck make it easy. Over time, compound interest and tax deferrals make a big difference in the amount you will accumulate.

Start a Plan

If your employer doesn’t offer a retirement plan, suggest that it start one. Simplified plans can be set up by certain employers. Read about IRAs in Publication 590 on the IRS website.

IRA

You can put up to $5,500 a year ($6,500 if you are age 50 or older) into an Individual Retirement Account (IRA) and gain tax advantages. When you open an IRA, you have two options: a traditional IRA or a Roth IRA. The tax treatment of yourcontributions and withdrawals will depend on which option you select. The after-tax value of your withdrawal will depend on inflation and the type of IRA you choose.

Savings

Don’t dip into your retirement savings. You’ll lose principal and interest, and you may lose tax benefits. If you change jobs, roll over your savings directly into an IRA or into your new employer’s retirement plan.

Get Started

Start early. The sooner you start saving, the more time your money has to grow. Put time on your side. Make retirement savings a high priority. Devise a plan, stick to it and set goals for yourself. Remember, it’s never too early or too late to start saving. So start now, whatever your age!

Basic Investment Principles

How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you’ll have saved at retirement. Know how your pension or savings plan is invested. Financial security and knowledge go hand in hand.

Ask Questions

Talk to your employer, your bank, your union or a financial advisor. Ask questions and make sure you understand the answers. Get practical advice and act now. Financial security doesn’t just happen—it takes planning and commitment and, yes, money.

Facts

• Today, only 42 percent of Americans have calculated how much they need to save for retirement.

• 30 percent of those who have 401(k) coverage available don’t participate in their employer’s plan.

• The average American spends 18 years in retirement

At Accurate Insurance Solutions an employee benefits/HR consulting firm we can help you set up an employer-sponsored retirement plan such as a 401(k) or 403 (b), and equivalent self-directed investments such as a Roth IRA.

We can help you create a pension plan that will help you attract and retain the best talent, and keep your employees loyal and secure for a lifetime.

If you have questions give us a call 813-994-4414 or visit our website.

You can also download a copy “10 things to know about planning your retirement income”

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