Are You Ready For Your Retirement?

If the current real estate market doesn't scare you, the current status of your retirement planning probably should. Are you ready for your golden years or at least on the path to being so? These stats and tidbits of advice might change your mind.

If your employer offers a tax-sheltered savings plan, such as a 401(k), sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy.

Experts estimate that you'll need about 70 percent of your pre-retirement income - lower earners, 90 percent or more - to maintain your standard of living when you stop working. Take charge of your financial future.

In 2005, of those who had 401(k) coverage available, 25 percent didn't participate. If you are one of these, get enrolled and participate!

With rapid medical advances and new thinking about U.S. life expectancy, growing longevity in the future may be much longer than is usually assumed. How will you pay for a longer life?

Social Security pays the average retiree about 40 percent of pre-retirement earnings.

On average, a female retiring at age 65 can expect to live another 20 years, 3 years longer than a man retiring at the same age. Savings can increase a woman's chances of having enough money to last during her retirement.

Take inflation into account. A mere 3 percent gain each year can mean you will need nearly twice your salary at 40 to live comfortably at 80.

Social security benefits are not determined by your total contributions. Instead, your benefits are based on your 35 highest earning years.

To receive social security benefits, you have to work for 10 years and have accumulated 40 social security credits. Check your social security statement each year to see where you stand.

Your social security statement should come to you each year around your birthday. If it does not, contact the agency to update your address.

An investment of $10,000 that earns 10% annually over the course of 40 years will amount to nearly $453,000 at the end of that stretch of time. Over the course of just 25 years, however, that same 10 grand increases to a mere $108,347.

Instead of blowing a tax refund, have the IRS deposit it directly into your IRA or retirement account.

If you have a lump sum of cash to contribute to an IRA, go with a Roth IRA. Why? You will get the distributions tax-free.

Don't access the equity in your house unless the money is used to improve the value of your home. Don't buy flat screen televisions and such.

Consider using annuities to fund your retirement. They are a decent retirement vehicle, but are great because they allow you to be sure you will receive a check each month for a certain period of time.

If you consider playing the weekly lotto to be your retirement plan, it is time to wake up. Time will pass before you know it and you will have to be ready to retire. Save now or you will seriously regret it when your measly social security check floats in.