Unless you are rich, saving for retirement is likely one of your biggest worries as a working adult. Most Americans get their retirement income from multiple sources, such as Social Security, IRAs and investments. Below, you will learn about these income sources, and you will find out how Wealth Management in MA can help you ensure that your retirement is comfortable.

Social Security
The government administers the Social Security program, which ensures that working people will have some retirement income. A worker can collect Social Security after working for ten years, and the benefit is based on the worker’s 35 highest-paying work years. If someone works for less than 35 years, non-working years count as zero. As of the middle of 2014, the average retiree receives $1,255 per month.

Investments and Savings
According to a recent survey, almost 70% of working Americans expect to use their personal savings during retirement, and a like number expect their employer-sanctioned retirement plans and IRAs to play a major role. In the same survey, about 43% of retirees said that investments and savings were a substantial source of retirement income.

IRAs
The traditional IRA has existed since 1974. Contributions made to these IRAs can be partially or fully tax-deductible, depending on circumstances. A distribution from an IRA is taxed the same way as regular income, and if it is taken before age 59 ½, it may come with a 10% tax penalty. Once you reach 70 ½, you must take minimum distributions.

Set Contribution Plans
Over one third of American workers can participate in a contribution plan like a 401(k) or 457. An eligible employee can save part of their income before taxes, and the money accrues interest on a tax-deferred basis. A distribution from such a plan is taxed like regular income, and if it is taken before age 59 ½, it includes a 10% tax penalty.

Despite all of the above sources of retirement income, some seniors choose to continue working to supplement their income. Per the results of a recent survey, almost 75% of workers plan to keep working past the traditional retirement age. However, only 25% said that wages were a substantial part of their retirement plans. wealthmanagement in MA can help you save for retirement without putting undue stress on your current finances.