The following is a post on behalf of Money Supermarket.
Americans know that they will have to fund a large part of their retirement if they wish to live the lifestyle that they have become accustomed to. Many people are now checking for the best savings accounts at moneysupermarket and other such websites in order to get the best return on their money when they retire.
It is never too early to plan for retirement. The earlier this is done the better quality of life a person can expect during retirement. It is advisable to sit down and calculate how much money is needed to live comfortably during the later years of life.
Things such as holidays, hobbies and other non-essential expenses should also be taken into consideration in order to be able to have an enjoyable retirement. After doing these calculations you should now have a good idea of roughly how much is needed per month or year to cover all expenses.
If you are a homeowner you may add the increasing value of your home into the equation. By the time that people retire, most have paid off their mortgages.
Their homes have by now usually appreciated to a noticeable extent and they are sitting on a big pile of money. At this point many people opt to sell their homes and move into a smaller rental unit.
The cash gained from doing this can be quite substantial and also stops you having to pay house taxes and maintenance expenses.
With that being said, the future value of a home should not become the mainstay for retirement planning. Too many things can affect the value of the home to place complete confidence in this.
With these things in mind it is important to make regular payments into a retirement savings account. It may be a good idea to sit down with a certified retirement planner to get an idea of the kinds of savings accounts and options that are available.
The more informed you are the better it will be for your future. Generally, the higher the interest rate you can obtain in your account the better it is for compound growth.
It is usually advised that 10% of the gross income should be regularly put into a retirement account.
Many people have employers matching their retirement contributions through company retirement plans such as the 401(k). When this is not available it is a good idea to check out the available retirement savings accounts and see what rates and terms they are offering.
Generally, it is a smart idea to have an account that does not allow you to withdraw money for other expenditure. The terms should be carefully gone over to make sure they meet with your requirements.
It is possible to have a company retirement plan transferred to another account if you no longer work for the company. This may appeal to you if you would rather have your retirement money in one account.
If your savings account has a better interest rate this may be a good option. Interest rates can be affected by market fluctuations so choosing a fairly conservative account is a prudent choice.
Many years can go into growing this fund and it would be a shame to lose some of its value due to market fluctuations.