Financial experts say now is the time to plan ahead if you're thinking about retiring within the next couple of decades.
The economy is picking back up, and companies are hiring again. That’s one reason financial experts say middle-aged Americans shouldn't feel discouraged if they're behind on their retirement savings due to the pandemic. KTRH’S Ric Edelman, host of “The Truth About Money”, says it's vital for employees to consider company benefits as they return to work or consider a new job.
“For many workers, 40% of total compensation is non-cash. Meaning, your salary is just the beginning,” Edelman said. “Look at paid vacation, paid medical care and dental, paid life insurance, and of course, retirement plan.”
He always advises contributing to a company retirement plan like a 401(k) because you're allowed put much more into a 401(k) yearly than in an IRA.
“Join the 401(k) at work first. Or 403(b), or in a federal government Thrift Savings Plan. Whatever your boss offers, do it,” Edelman explained. “Especially if your boss puts in a matching contribution. You’ve doubled your money before anything else happens.”