If your company doesn’t offer a retirement plan like a 401(k) or pension plan, you're not alone. In fact, according to the U.S. Bureau of Labor Statistics, you're among 55% of all workers who don’t have access to a defined contribution plan.1
Don't let this discourage you. There are still many ways you can start saving for retirement. Consider these options.
Get a head start on retirement planning
If you're not putting money into some type of long-term investment vehicle to help save for retirement, then you're risking your future. It will be hard for you to keep pace with your current standard of living in retirement if you don't do something about it now. Keep in mind that investing in the stock market involves market risk, including possible loss of principal.
The sooner you invest, the more opportunity your money has to work for you. There are things you can do now to help make sure you have lifetime income.
Think about individual retirement planning
There are many ways to save for retirement outside of work, including:
- IRA - Contributions are tax-deductible now. Withdrawals are taxed as ordinary income and if taken prior to age 59½ they may be subject to a 10% penalty. You can contribute to a traditional IRA until age 70½, and there are no income limitations.
- Roth IRA - You’ll have to pay taxes on contributions now and you won't be able to deduct these contributions - but any earnings grow tax-free. And with the Roth, there is no limit to how long you can contribute.
- Guaranteed Retirement Income from Nationwide - Make flexible contributions of at least $120 annually for at least 15 years or until you reach the age of 65, whichever is the longer period of time. With Guaranteed Retirement Income from Nationwide, you will receive income every month, guaranteed, for the rest of your life.
- Money Market Account - A high-yield savings account that’s FDIC-insured up to $250,000. In contrast to a CD, with a money market account, you can still have regular access to your funds.
- Stocks, Bonds & Mutual Funds
- Traditional Annuities - An insurance contract issued by a life insurance company that provides income at regular intervals for a defined period of time, such as a specific number of years or for life.