Consumer Watch: Increasing retirement savings by one percent
OKLAHOMA CITY (KOKH) —
Oklahoma isn’t at the top of the list when it comes to retirement. According to a WalletHub survey, states like Florida and Colorado are considered good to retire in, but Oklahoma is listed as number 36. The survey ranks Oklahoma high in affordability, but low when it comes to quality of life and health care.
Building your retirement, wherever you decide to retire, comes down to saving the money. There is no getting out of that, but there are financial moves that can make the savings easier than you might expect.
If you are not saving for retirement, it's important to start. For those who already are, there is a chance you aren't saving enough to get you to your goals. Ted Hughes, Co-President of Hughes Warren Inc. often breaks down retirement facts for Fox 25 Consumer Watch.
“We have never had a client come in and say, ‘I wish I wouldn't of saved so much for retirement,’” says Hughes.
If you have access to a 401(K), you should be saving at least as much as your company is willing to match. Still, this may not get you to a comfortable retirement goal. If you are nervous about taking larger chunks of your paycheck, try a yearly increase of one percent.
Aggressive savers can also choose to start a Roth IRA in addition to a 401(k). Having two kinds of retirement accounts is a good way to aggressively save, but make sure you are taking full advantage of one before opening a second one.
“We would encourage someone to max out their 401(k) plan, and then think about doing an IRA. Reason being is that typically with a 401(k) there's employer matching dollars, and you don't really get that with an IRA. That is not available,” says Hughes.
Any retirement savings is a step in the right direction, but most retirement experts recommend you save 10 to 15 percent of your income for retirement. If this is not possible for you now, that one percent increase a year is a good way for you to slowly build to saving more. You probably won't even notice the increase form one year to another.
If you have worked at different companies, you can consolidate your retirement accounts. This would make it easier to keep track of your different accounts. Your retirement planner or whoever handles your 401 (k) can help with the decision.