Social Security is intended to be a supplement to other retirement income.
The responsibility for obtaining sufficient retirement income is yours.
A 401(k) retirement plan provides one of the most popular forms of retirement planning.
You will need more money for retirement than you think. Every year,
things cost a little more. That's called inflation. For retirees on a
fixed income, this means the money they've put aside is worth less each
year. The following graph shows the decreasing buying power of $1,000,
even at a small inflation rate of 3% (assuming no growth through investing).
Investing early pays off. The example below shows the difference that a ten-year head start can make.
Investor at Age 67
What a difference a decade makes! In this example, starting an investment just 10 years earlier makes a $448,000 difference. This is the result of a $1,000 per year and assumes a 10% annual growth rate.
It's never too late to start saving for your retirement. You may need to invest more if you are closer to retirement age. The important thing is to get started today.