Are You Saving Enough for Retirement?

When it comes to retirement planning, the main concern on your mind may be, Am I saving enough for retirement? Of course, there are no easy answers to that question. The amount you need to save can depend greatly upon your expected lifestyle in retirement, your life expectancy, and the amount of money you can actually afford to set aside.

You could actually answer your question with another question: Am I saving all that I can? While it can be difficult to predict the future and know whether you’re actually saving enough money, we do know that saving everything you can is the best way to ensure a healthy retirement income.

For 2015, the definition of  “saving all that you can” will be changed. The IRS has released new contribution limits for retirement accounts, allowing those saving for retirement greater power in setting aside tax-deferred money for the future.

The new contribution limits are as follows:

• For 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan, the limit has been raised from $17,500 in 2014 to $18,000 in 2015.
• People aged 50 and older can make “catch up contributions” to the same retirement accounts, and limits have been raised from $5,500 in 2014 to $6,000 in 2015.
• If you’re 50 or over, you can contribute a total of $24,000 to your retirement account in 2015, up from $23,000 this year

Before the beginning of 2015, contact your payroll department at work. Ask to have the automatic contributions to your retirement account increased, so that you take full advantage of these new tax-deferred savings limits. By saving the maximum amount allowed by the IRS, you’re taking the right steps toward providing yourself with a stable, comfortable retirement income in the future.

13943 – 2015/1/2