Have you thought about saving for retirement, but don’t know how or when to start (saving)? According ShareBuilder president, Dan Greenshields, who joined me this week, it’s never too early, and you can save based on the lifestyle you want to lead upon retirement thanks to a useful tool on the ShareBuilder website!
Candace Rose: Capital One ShareBuilder recently released a new survey. Can you tell us a little bit about it?
Dan Greenshields: “Sure. This is a survey we do every year on Americans and their retirement plans. There was a couple interesting things that came out of it. First- there was a little bit more confidence. 33% of the people were more confident in their ability to meet their needs in retirement vs. last year it was up. With that being said, 54% of the people want to retire at age 65, and only 36% of them are not saving at all, so there’s a bit of a disconnect.”
Candace Rose: Were there any results that surprised you?
Dan Greenshields: “There were. One of the barriers to retirement- the number one thing was college. College either for their children or grandchildren. And the fact is you can get a loan or a grant, or there’s lots of programs to pay for college. There is no retirement loan that you can get. So retirement is really one of those things that you really have to take matters into your own hands. It’s a three-legged stool. Your retirement savings come from your own savings, either your workplace pension or your 401(k) and Social Security. That’s it. If you’re not doing it, nobody’s going to do it for you.”
Candace Rose: Do you have any tips for those looking to plan to retire?
Dan Greenshields: “It’s never too early to start, even if you’re in your in very first job. If your employer provides a 401(k), that’s a great place to start saving. And especially if they offer a match, that’s free money, and you ought to sock that away and it’ll work for you for the next 30 or 40 years while you’re in the workforce.”
Candace Rose: Do you have any additional tips or information you’d like to share with us?
Dan Greenshields: “Yeah, at ShareBuilder.com we have a tool- Retire My Way that allows the user to put in some information and it’ll calculate on a monthly amount how much you need to save for the type of style you want to live in during retirement.”