Steady contributions key to retirement saving

May 19, 2011

Seniors need to consider making steady contributions to their retirement accounts

Many Americans say they simply aren't sure how to start saving for retirement, though a report suggests baby steps could help them get on their way.

Americans ought to take the few dollars they would use on frivolous expenses - such as a cup of coffee in the morning or a lottery ticket - and apply them toward a savings account, said Mechel Glass, director of education for CredAbility. For instance, putting $10 a week into a saving account with an average return of 7 percent would yield $7,500 after 10 years and $35,000 after 30 years, said Glass.

"The key to saving for retirement is making steady contributions over time," said Glass. "Skipping your morning stop at the coffee shop and bringing your lunch even a few days a week can add up to thousands more in retirement savings."

The expert also suggested developing a visual guide to how much one will need for retirement, and encouraged workers to contribute to their work-sponsored retirement account.

A term life insurance policy is also vital to a retirement plan, since the coverage can keep a family on their financial feet even if an unforeseen incident comprises their retirement - or immediate - funds.

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