Saving For Retirement - The Basics 

Factors to Consider When Reviewing Your Retirement Planning Strategy

Over the past few years, retirement planning has become increasingly complex. Today, you need to balance a wider range of financial issues than ever before: from IRA and 401(k) accounts, to estate planning, income distribution strategies, tax changes and social security benefits.  Here are some factors to consider when reviewing your retirement planning strategy.

Know Your Retirement Needs. Retirement is expensive. Experts estimate that you'll need about 70% of your pre-retirement income-lower earners, 90% or more - to maintain your standard of living when you stop working. Understand your financial future.

Find Out About Your Social Security Benefits. Social Security pays the average retiree about 40% of pre-retirement earnings. Call the Social Security Administration at 1-800-772-1213 for a free Personal Earnings and Benefit Estimate Statement (PEBES).

Learn About Your Employer's Pension or Profit Sharing Plan. If your employer offers a plan, check to see what your benefit is worth. Most employers will provide an individual benefit statement if you request one. Before you change jobs, find out what will happen to your pension. Learn what benefits you may have from previous employment. Find out if you will be entitled to benefits from your spouse's plan.

Contribute to a Tax-Sheltered Savings Plan. If your employer offers a tax sheltered savings plan, such as a 401(k), sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, deferral of taxes and compounding of interest make a big difference in the amount of money you will accumulate. Learn More About 401(k)s