Retirement Strategies for American Workers

retirement advice

It’s never too early to think about retirement. In fact, the earlier you start the more money you’ll ultimately be able to retire with. Some Americans get a late start, but it’s always wise to put money away for your golden years. As you age more expenses will arise, mainly ones that are healthcare related. You’ll likely be too old to continue working, so you need to have a nest egg with enough money to support your lifestyle. You can receive benefits from the government, which certainly help, but you shouldn’t rely on it. The payments you receive are typically lower than your expenses. It’s never too late to start up a retirement plan, so take a look!


A 401k is a standard for many employees, but not every company offers them. But workers with a plan like this need to take full advantage. If your employer matches, contribute that amount. If you want to add more, that’s fine, but the money might be better spend in other places. A 401k is an excellent investment option, and your money will only grow over time, barring any economic slumps. Compound interest is a powerful tool, and you’ll realize that when you retire early and comfortably. This is the go to strategy for most American workers, and for good reason.

Roth IRA

If you have extra money lying around and you are keeping it in savings, consider maxing out your Roth IRA. It’s money that won’t be taxed when you decide to pull it out upon retirement, and you’ll have control over where and when you want it invested. You can put the money in many different places, but mutual funds are a great place to look. They are less risky but the returns will be lower. Talk to a financial advisor if you are having trouble determining the best spot for your money.


One of the benefits of working for the United States government, whether it’s state, local, or federal—is the pension you receive upon retirement. Here’s how it works for most jobs. You work for twenty years with the government with no breaks in employment, and eventually you’ll be eligible to receive a percentage of your current salary for the rest of your life. The longer you work past this period the higher this percentage will be—up to 80 percent. Many former government workers retire in their late 40’s / early 50’s. This naturally leaves the door open for these workers to work a different job, and they receive their pension plus the new salary. Not a bad life.

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Matthew Welch

Jobdiagnosis blog author Matthew Welch is an SEO strategist and content marketer from Boston, MA. Read blog content relating to job search by Matthew Welch.

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