Ladies, how much do you save for retirement? Why do you do it? There was an interesting commenter thread about feeling saving burnout and wanting to splurge a little — do you count retirement savings as something you can cut back on, absent a strong need? We’ve talked about how much to save for retirement, what kind of tax-savvy investments exist to maximize your retirement savings, when to pay down debt vs. save, and where retirement should fit in your total money roadmap.
(Pictured: Hobo ‘Taylor’ Glazed Leather Wallet, on sale at Nordstrom for $70.)
For my $.02, I didn’t get started saving for retirement in a 401K or other tax-savvy vehicle until my late 20s, and I regret that — as they say, there are few powers in this universe stronger than the power of compound interest, and this kind of chart always freaks me out. My husband and I have generally taken the view that saving for retirement is one of our top priorities, and we max out every tax-advantaged vehicle. Like most parents of small kids, I’ll admit that these past few years (yay, childcare expenses) have been tight, and we’ve been moving money from our other, non-tax advantaged savings in order to max out our retirement accounts. (In case that’s unclear — I try really hard for us to spend less than we earn, and I kind of freak out if our take-home earnings for the month are less than we need to pay our bills. But then I remember that our retirement savings and 529 savings are deducted before they get to our take-home earnings, so as long as I can use our other savings to make up for the shortfall, I feel OK about it — within reason.)
How about you, ladies — what are your strategies for retirement savings? Does anyone get a match or perk you’d care to tell us about (anonymously)? Any good tips on how to do it?