Starting & Enhancing Your Pension



The retirement challenges we all face are difficult, but there are some steps people can take to ease the way:

  1. Save more. Women in the USA have an average 401(k) balance of $56,320, almost $47,000 less than men’s, according to a study by consulting firm Hewitt Associates of savings levels of 2 million U.S. workers. Saving just a little more can go a long way. Someone earning $57,000 annually who increases her 401(k) contribution to 4% of salary from 2% will have an extra $81,000 when she retires, according to Hewitt. Cost of delay . . .
  2. Delay retirement. If health allows, delay retirement until age 67 or even 70. That means more savings years, fewer years of tapping savings and higher monthly Social Security benefits.
  3. Don’t cash out. Women cycle in and out of the work force more often. When you do leave a job, roll your savings to another retirement plan, such as an individual retirement account or take out a personal pension plan
  4. Consider taking on more investment risk. As this is a long term investment you can take on more risk earlier on — talk to your Banner advisor.
  5. Unit Cost Averaging  Can’t stress this enough!
  6. Consider seeing a financial planner. For busy people facing complex calculations, a trusted adviser can help you get on the right path to savings. But that is why you are here now.