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Saving up tips as you grow older

Saving up for retirement

Posted on 10/21/12 2:17:00 PM

This week marks the National Save for Retirement Week, which is a time for employees to think realistically about their personal retirement goals and figure out if they are on target to reach them.

Workers around the country have an infinite number of resources that are now available to them to make the transition into retirement more smooth.

“Americans know they should save for retirement, but the truth is many of us aren’t saving enough,” said Chris Augelli, vice president, product marketing and business development at ADP Retirement Services. “A Pew Research study shows that younger workers, in particular, are more willing to save for retirement if their employers can make the process as painless as possible. By choosing the right kind of plan and maintaining an open dialogue with employees, employers have the opportunity to help reverse the trend of a lack of retirement readiness and motivate employees to strengthen their own retirement security.”

Tips were recently released to help make the transition to retirement easier for Americans, encouraging them to set up basic savings accounts while they're in the workforce so when they transition, they will have the finances necessary to be comfortable.

Employees who are in their 20s and 30s should contribute enough to get their 401(k) plan matched and aim to increase their contributions over time in order to have a significant amount when they decide to ultimately retire.

When employees are in their 40s, they should consider saving the maximum allowed, which is $17,000 in 2012.

By the time employees are in their 50s, they should either be near their goal of saving for retirement or playing catch up if possible since there is still time to close the gap on any shortfalls that may negatively affect their savings account.

“ADP Retirement Services has provided us a user-friendly vehicle for our employees to help them become retirement ready," said Santiago Navarro, director of human resources for New Jersey-based Camfil Farr, Inc. "Through our partnership with ADP, we have gotten great satisfaction seeing how education really helps our employees prepare for retirement. It also gives us great peace of mind seeing how keeping our employees engaged in the planning and saving process can help them maintain their standard of living throughout their retirement years.”