Many people in younger generations are experiencing the challenges of their older loved ones as baby boomers approach retirement. This is causing a growing number of people to think about their financial future and to max out on their 401(k) contributions. Research from the Economic Policy Institute indicates that retirement saving in United States is a serious problem since half of all Americans have no retirement savings at all.
Although some Americans are on the path toward retirement security, others are exceeding the accomplishments of their peers. There are a growing number of retirement super savers that are contributing a minimum of 90% of their 401(k) policy contribution limit set currently at $18,000 a year.
Principal Financial Group identified that there are four common behaviors for these retirement super savers that are helping them to accomplish their retirement planning goals well in advance. These include:
- Â Â Â Â Â Â Living in a modest home
- Â Â Â Â Â Â Driving an older car
- Â Â Â Â Â Â Skipping luxury vacations
- Â Â Â Â Â Â Working harder
A high enough income contributing to your retirement savings can lead people to put up with more stress associated with their job in exchange for the ability to earn more money that they can set aside for retirement. Since retirement planning and estate planning often work so well together, setting aside more money for your retirement should also prompt you to consider setting up estate planning tools such as a trust to help care for your loved ones if something were to happen to you. Consult with an experienced estate planning lawyer today to learn more.
