Who is Saving?
According to a TIAA-CREF survey, just 22% of Americans are saving for retirement. This is not good when you are living in a country that is already over-burdened with expenditures (the U.S.A).
How Much Are People Saving?
Although the 2012 401(k) contribution cap is $17,000, just 9% contribute that much (Employee Benefit Research Institute). If you can, it’s great to stash away as much as possible for retirement. You can always take it out early if absolutely necessary. But, typically it’s out of site out of mind– and that will help you in the future.
In addition, if you stash money away into a Roth IRA (read: What is a Roth IRA?) you can shield yourself from the potential for higher U.S. tax rates at the time of your retirement. And, taxes are probably going up soon.
For More Read: When to Start Saving for Retirement?
