Planning for retirement is very crucial to be financially secure and independent after retirement. But, it is most unfortunate that most of the people do not have income enough to contribute for retirement savings or investments. Since, it seems to be a struggle to make both ends meet nothing is left for retirement planning. Most of the people do not consider about preparing for a comfortable life after retirement. Either they do not make retirement plans at all or they do not start planning until they are in their 40s or more.
Due to the lack of proper planning for retirement, many end up getting satisfied with whatever they get from the government as pension. However, it is not difficult to make planning for retirement. It is a misconception that only wealthy people can afford to make planning for retirement for comfortable living. There are quite a lot of opportunities that can be used properly to make your money work for you. By spending some time to make a research or consulting a professional expert, it is easy to make retirement plans that are highly rewarding.
Sources of Information regarding retirement planning
There are relevant and reliable sources for retirement advice which could explain all about stocks, mutual funds, bonds, Real Estate Investment Trusts (REIT), Simplified Employee Pension (SEP) and Individual Retirement Accounts (IRA). These are some of the opportunities for investment to consider. U.S. Social Security Administration offers information regarding retirement planning and it also provides financial calculators and forms for retirement planning which could help you determine how much of social security benefits you are entitled to in future. The company retirement policies, the social security system and the personal lifetime savings are the sources that infuse funds for expenses after a person gets retired.
The plans that can be opted for retirement benefits are many. The plans that do not meet the requirements of the ERISA or IRC are not considered to be qualified plans. A qualified retirement plan involves tax benefits. The non qualified retirement plans permit more flexibility to the employers and so tax deductions are not allowed until the proceeds from that particular plan is received by the employee. The compensations are deferred in the non qualified retirement plans. The company pension plan is funded by the employer and it is fixed as some specified amount or a definite percentage of wages and the employer considers taking responsibility for the payment and the associated benefits.
Most of the employers consider the importance of retirement planning benefits for the employees and counseling is arranged by the human resources department for the employees to stress on the need to make retirement plans in many companies. The banks also offer free consultations for retirement plans and a meeting with the bank manager can help you take steps for retirement plans. Best sources of information about retirement planning are the investment firms. With the guidance of the professional investors, you can have a diversified portfolio so that you can achieve both short term and long term financial goals.