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Improving retirement savings

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A recent FOX Business article recommends a number of ways in which people can accelerate and maximize their retirement savings. Setting a goal and determining how much money will be needed in retirement is an integral component of establishing an effective budget.

"People who are just socking money away in hopes that they will be able to accumulate enough money may not be planning as well as the people who know what they need to do," Scott Cramer, president of a Florida-based financial advisory firm, told the source.

The article highlights the wisdom of taking advantage of 401(k) plans in which the employer offers to match workers' contributions. CPA Pamela Kiernan states that employees who don't take advantage of matching 401(k) contributions are preventing themselves from getting free money.

Cutting back on spending is one of the best ways to save for retirement, according to the source. Skipping an annual family vacation or foregoing purchasing a new car can help, as can limiting smaller everyday expenses like a cup of coffee.

Those looking for additional ways to save money could consider the benefits of annuities. Money invested in annuities grows on a tax-deferred basis, meaning annual contributions are not taxed. People don't start paying taxes on annuities until they begin withdrawing from the account.

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