Start saving early. Normally the recommendation is 10% of your annual salary after taxes. Save more if you can or if you are closer to retirement, save 15% to 20%.
Make sure your employer is taking out of your check the amount that corresponds to Social Security but when you leave you will not be entitled to social security benefits. The social security benefits are paid from the 6.2% tax on your weekly check at 6.2% payable by the employer. It also leaves 1.45% of your check and 1.45% paid by the employer for Medicare.
- A good way to find out if your employer is taking out what is due for your Social Security benefits is to make sure you are receiving a W2 form. This form indicates the amount of tax that you and your employer are paying for Social Security. When you have a new job, make sure you have been given the W4 form to fill out. Form W4 is the document that legally establishes you as an employee of a company or business.
- For those who are supposed to receive social security, not all jobs have this tax, which are covered are domestic workers, federal employees, armed forces and those who work for themselves. If you have a concern about your situation or any questions, call the IRS at 1-800-829-1040 or go to the Social Security page: www.ssa.gov/espanol/ .
It is important to plan for retirement now. How? First of all, find out how much you will receive from social security when you retire. Go to www.ssa.gov/espanol/ there you can calculate your retirement benefits. Remember that it is only an estimate, the amount can change with the cost of living and inflation
It is better to be safe, diversify your retirement plan with other ways of investments besides your personal savings. Investigate bonds, certificates of deposit, stocks, current accounts, mutual funds, real estate or commodities (gold, silver, etc.).
You may have to modify your lifestyle. If you have not saved enough for your retirement you may have to continue working during your old age. You may also have to live a little more modestly than you are used to. Keep these things in mind.
You have to be emotionally ready for retirement. For most people, retirement is an episode of new life, it is a new experience. For a person who is used to working constantly, it is like taking on a new identity in retirement. Your identity is associated with always making money, it is a very big change. It is important to have an objective when you are going to retire, have something that prepares acer, that brings you happiness, a project, a new adventure.