Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Any program where money is being set aside for retirement would be a retirement savings program. These programs address a fundamental concern. In order to have adequate money in retirement you must shift current spending to capital which can be drawn down in retirement in the form of income.
The statistics are alarming. Few properly prepare for retirement. The result is that many must retire on a greatly reduced income, continue working, or seek outside help to sustain themselves.
The competition is between providing for current needs and wants and forwarding money into the future for spending in retirement. A retirement savings plan helps you do that. Retirement savings plans come in a wide assortment but can be grouped into plans where the employers match a percentage of the contributions made to the plan by an employee to those where the worker pays the entire amount saved. These plans can be divided into two groups, those which are funded with money after taxes and those which are either withdrawn from payroll or are deductible on a personal income tax return. These types of plans are taxed differently when a person retires so a person should carefully consider their options when opening a retirement savings plan.
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The statistics are alarming. Few properly prepare for retirement. The result is that many must retire on a greatly reduced income, continue working, or seek outside help to sustain themselves.
The competition is between providing for current needs and wants and forwarding money into the future for spending in retirement. A retirement savings plan helps you do that. Retirement savings plans come in a wide assortment but can be grouped into plans where the employers match a percentage of the contributions made to the plan by an employee to those where the worker pays the entire amount saved. These plans can be divided into two groups, those which are funded with money after taxes and those which are either withdrawn from payroll or are deductible on a personal income tax return. These types of plans are taxed differently when a person retires so a person should carefully consider their options when opening a retirement savings plan.