Congratulations! You are taking the first step toward financial security in your retirement by taking the time to learn about your saving options. Whatever your age, financial situation, or saving experience, you are in the right place to get started.
Ensuring financial security in retirement is one of the greatest challenges facing American workers today. With uncertainty over the adequacy of Social Security to meet the needs of future retirees, Americans will be forced to rely more heavily on their own resources to support their retirement lifestyle.
The world of employer-sponsored retirement plans is changing, too. Much less common today is the defined benefit plan. A defined benefit plan is the kind of plan that assures former employees a dependable income throughout their retirement years. The pension world is changing to one in which employees now carry most of the burden of saving for retirement. And even when an employer plan is available, employees may be required to make most or all of the contributions.
If you have additional questions, please consult with a tax professional.