Saving for retirement is something everyone thinks about but struggles to follow through with. Here’s the top reason why and what you can do about it. PennyGem’s Johana Restrepo has more.
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00:03 Saving for retirement is something everyone thinks about but struggles to follow through with.
00:08 One common obstacle is debt. Money Talks News points to data by Transamerica Center for Retirement
00:14 Studies which says that almost half of working Americans agree that debt keeps them from saving
00:20 for retirement. Broken down by demographic groups, Gen Z agree with the statement the most,
00:26 followed by Millennials, Gen X and Baby Boomers. If your company offers a retirement plan like a 401k
00:33 and matches what you contribute, take advantage of that free money. Contribute to a Roth IRA or
00:39 a traditional IRA depending on which one works for you. With a Roth IRA you pay taxes as you contribute
00:46 and with a traditional you pay taxes later on. Nerd Wallet recommends you turn back to a 401k plan
00:53 if you max out the IRA. The annual contribution limit for an IRA is $6,000 or $7,000 if you're 50 or older.
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