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By Elaine L. Chao
U.S. Secretary of Labor
For News USA
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(NU) - America's passionate celebration on July 4 was a
reminder of how much we value our freedom and independence.
Ironically, only about half of all Americans are taking steps to ensure
that they will have financial freedom and independence during their
retirement years.
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Independence Day is a time we celebrate the good things
about being American, including the fact that every American has the
opportunity for a bright future. Part of that bright future is a
secure retirement. And when people's futures are more secure, our
nation is more secure.
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So let's make Independence Day our yearly marker for an annual check-up on
our progress toward achieving financial independence in retirement.
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Here are just a few simple tips that will help to ensure your financial
security in retirement:
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Retirement is expensive! Experts estimate that
you'll need about 70 percent to 90 percent of your pre-retirement income
to maintain your standard of living when you stop working.
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Social Security pays the average retiree about 40 percent of pre-retirement
earnings. Call the Social Security Administration at 1.800.772.1213
for more information about your specific benefits.
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Your employer's 401(k) plan and Individual Retirement Accounts (IRAs)
shelter you from taxes while you save.
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Familiarize yourself with your plan. Find out what type of plan it is
- 401(k) or traditional pension; how your benefit is determined and what it
is now; and check your investment strategy.
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Resist the urge to spend what you've saved when you
change jobs. Roll over your retirement savings directly into an IRA
or your new employer's retirement plan.
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For a free savings fitness guide to financial independence, call the U.S.
Department of Labor at 1.866.275.7922 or visit the PWBA
Web site.
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Let's celebrate the freedom and opportunity we have as
Americans by taking steps now to secure our financial independence in
retirement.
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