Anyone reading this should be able to benefit from more retirement savings. At the very least, you should be happy to pay less taxes along the way. The bottom line is most people need to be saving more for retirement and there is no better day than today to take important steps to fund the retirement you want.
The federal government has created a number of tax-advantaged retirement accounts to incentivize you to save for retirement. It also set up these accounts to try and make it harder for you to raid your life savings. The most common of these include the Roth IRA, 401(k) and the Individual Retirement Account (IRA). The tax advantages of these various accounts can make it easier to sock away larger amounts of money each year.
If you are lucky enough to have a retirement plan through work, you may be eligible for matching contributions. This is essentially free money from your employer. For example, if you put in three percent (or more), your employer may match that amount with an additional three percent. This would essentially double your money overnight. Sadly, the average worker leaves $1,336 per year of employer match on the table.
If you are self-employed, you may think you are too busy or cash-strapped to start a retirement plan. You also have quite a few more options to choose from, which can be another hurdle to overcome. Work with your financial planner and CPA to find the right Small Business Retirement Plan, the tax savings alone could be huge.