Depending on which researchers you talk to, about half to two-thirds of all Americans aren’t saving enough for retirement.
There’s a variety of reasons for not saving for retirement. You might think you don’t have the spare money. You might think that saving money for retirement can be started “later.” Or, you’re one of those James-Dean-live-fast-die-young type of people who figure they won’t be around long enough to enjoy the delayed fruits of their labors.
Worse, some people might think they can rely on Social Ponzicurity to take care of them in their golden age.
The truth is, a lot of factors can affect your retirement. So, if you’ve calculated your retirement savings, or you’re going to–you might want to consider the following six factors that can influence your retirement:
What are your returns (the percentage that your retirement fund is growing) like now (especially after the severe market downturn)? Returns fluctuate. You want to figure out ways of increasing those returns.
How much money are you contributing to your retirement plan? You can always find ways to add more money to your plan.
Who is taking care of your retirement money and how much are they charging?
Rising costs can eat a hole in your savings. You should factor in a 1 or 2 percent rate of inflation each year.
Depending on what type of IRA or 401K plan you’re using, you could take a tax hit when you’re ready to retire. Another factor: we never know what the local, state, and federal taxes will be when we retire. So, plan on losing some money here.
Ask yourself: Do you plan to keep your current lifestyle in retirement? What would a 30 percent drop in pay do to your current lifestyle?
Finally how long do you have to retire? General rule: the sooner you start saving, the better compound interest has a chance to work its magic on your retirement account.
The point is. You can never know the future, but by improving your chances of success in these six factors, you improve the probability of a successful retirement.