David Giertz is the President of Nationwide Financial Distributors. David Giertz says that most Americans cannot retire comfortably because they do not save enough money throughout life. Retirement can be expensive, and this expense is further exacerbated by people who enter retirement early or who live healthy and enjoyable retired lives. Additionally, individuals at the retirement-age begin to pull out social security disbursements too early, which reduces the total amount of money the Social Security program pays out. David Giertz says that best way to ensure a comfortable retirement is to begin to save money at an early age. This means those who begin to save money at a youthful age will be better off once retirement age has been reached.
In the United States, Roth IRAs (individual retirement accounts) are an extremely popular type of retirement account that is run by the government and aided by the employer. Account holders also contribute by adding an equivalent amount from his or her paycheck every month. There is a limit set for each year, and, once that limit is met, no more contributions can be made to the Roth IRA. In 2017, the limit was set to $5,500 (or $6,500 for people who would be 50 by the end of the year). Further, people who file taxes as single or head of household cannot contribute fully until they make an income ranging from $120,000 through $135,000, and married people filing jointly may achieve the limit when income is $189,000 through $199,000 (those filing separately can only reach the limit if income is between $0 and $10,000).
A 401(k) is another type of savings account that is controlled by the government, while employers help contribute until a limit is reached. It is also recommended that individuals use the Saver’s Credit because limits increased there in 2018. People who rely on employer based retirement savings accounts generally are unable to deduct contributions from the IRA. Health savings account limits are also increasing, and, once retirement age is reached, money in these accounts can be used for anything.