YOUR MONEY How To Save For Retirement (NAPSA)—Americans are starting to think about retirement Getting Paid In America Survey: cent survey conducted in conjunction with National Payroll Week found that new entrants to the workforce don’t expect Social Security to be adequate to pay for their retirement needs. That may be why more than twooutof three are in favor of privatizing Social Security—and why more than four in five have begun retirement planning. Here are some things you can do to make the most from your paycheck so you can save more for Age 18-34 at ever younger ages. In fact, a re- retirement: Keep your taxes withheld close to what you owe. A lot of people look forward to a tax refund, but it’s like giving the government an interest-free loan rather than investing the moneyyourself. Direct deposit is safe, easy and secure, andit’s a plus if you are sick or on vacation come pay- day. You can payyourbills even if you are sick or away, because your moneyis in the bank. If an employeroffers flexible spending accounts, take advantage of them to cover out-of-pocket medical expenses and dependent care costs with pre-tax dollars. Once you commit your pre-tax dollars to a flexible spending account, you must useit, typically by the end of the year, or you lose it, but with the rangeof services and treatments covered—including over-the-counter medications such as Tylenol—this is not as big of a challenge as people mightthink. Moneyis like space; you expand your use based on how much you have. When you suddenly have more money in your paycheck, whether through a tax change or a Retirement Plan of Respondents 39.10% Actively save NOW to support retirement Rely on combo of savings and social security benefits 39.70% 10.70% Anticipate inheritance 11.40% Rely solely on social security benefits CE 19.10% No plan for retirement Source: APA Survey 2004 @ Begin saving for retirement as early in your career as possible, even if only a modest amount. raise or bonus, you may beinclined to just spend those extra dollars. If you can, apply those extra dollars to a savings account, 401(k) or other vehicle via automatic payroll deductions. Be smart about your 401(k) and pay yourself first. The money that you set aside now will create a more comfortable and stable lifestyle for you in retirement. National Payroll Week, an annual public awareness campaign, focuses attention on critical components of sound personal financial management, and educates the public about issues related to their paychecks. The campaign was established in 1996 and is sponsored by the American Payroll Association, a nonprofit organization dedicated to training and educating payroll professionals. For more tips and tools, go to www.nationalpayrollweek.com.
