How to Go for A Beneficial Retirement Planning?
Are planning hard to shop the right retirement plan? Facing a lot of difficulty in order to get the right choice?
If yes, then you have landed on the right article. Here are few points suggesting you the easiest way to pick the right retirement planning scheme.
Safety and security at least in the form of money is what every earner looks for the time after retirement. Superannuation schemes along with variety of benefits are out there. Being wise, you choose, save and enjoy all the benefits from retirement saving accounts.
Two most crucial issues regarding retirement planning are-
1. Benefit facility at the time of maturity.
2. Tax-exemption advantages.
Any offer translating these two facilities into reality, can be relied up on. However, the service providers’ brand name, goodwill and expertise while discharging its services are taken into account before finalizing the deal.
401k Retirement Planning-
The biggest security you can derive from 401k retirement saving scheme is its state-of-the-art facility for saving account holders. Besides, two major factors play the trick in making this retirement planning scheme popular and more affordable. The first one is yearly revision of maximum contribution limits and the catch up contribution facility for 50 years old and above citizens.
Until 2012, the maximum 401k contribution limit was $16,500 per annum. Though very few of the investors touch the upper limits given, almost 94% of the total number of investors saves much below the maximum amount, according to various survey reports.
Catch Up Contributions and Its Impact
The process of retirement saving generally should be started as and when a professional is employed. Every paid laborer of the economy has got the right to save a certain percentage of the earning along with the equal contribution from their employers.
However, few are unfortunate to kick start their saving for retirement. To facilitate them with equal benefits and safety after retirement, 401K planning comes up with ‘catch up’ offers. Those who are 50 years of age and above now can contribute more up and above the maximum contribution limits.
For them, the IRS has directed an upper limit of $5,500 added to the maximum 401k contribution. It simply signifies that now 50 years old or above aged citizens can save up to $22,500 per annum.
Reason for choosing 401k amid other offers
Tax-exemption facility attracts retirement planners towards this saving scheme. The State as well as the Federal Government exempts $6,000 from the saving amounts.
Hard earned saving means a lot for everyone. And it becomes more essential for the time just after retirement. 401k account holders enjoy this tax-exemption facility and get back a better value of their saving. That is why choosing 401K is a wise decision to secure life after retirement.
Over to You
Retirement planning consists of considering schemes available, verifying facilities, return benefits analysis and most importantly, value of money at maturity. Considering all these you can choose a sound and fool-proof retirement plan to stay happy throughout life.