One of the best ways to save for your retirement is to use a tax-advantaged (e.g., tax exempt or tax deferred, etc.) account such as a 401(k) or 403(b) offered through your employer. While work-sponsored retirement accounts aren’t available to everyone, this doesn’t mean you can’t gain access to a 401(k). Most people can open an individual retirement account (IRA) and make the most of useful tax breaks. advantage of some useful tax breaks.
Two types of IRAs, traditional and ROTH, are similar but have different tax structures with different benefits.What you need to know about IRAs
With a traditional IRA you’re deferring the taxes you owe on income until retirement, when you’re likely to be in a lower tax bracket.
With a Roth IRA, a person will pay taxes on income in a given year, and not have to worry about those taxes in retirement. You also earn tax-free income in the form of investment gains on your Roth IRA contributions.
For a detailed review of the similarities and differences between the various retirement accounts it’s best to consult with a financial advisor. In the meantime, the Simple Dollar has an easy to read resource, “Which Retirement Plan is Right for Me?”
Thinking of Retiring? Planning is Key
These slides from the "Social Security - Planning Your Retirement" presentation provides a wealth of information, courtesy of the Social Security Administration.
With retirement, disability, and survivors benefits, Social Security is one of the most successful anti-poverty programs in U.S. history.
The New York State Employees’ Retirement System (NYSERS) provides benefits for state civil service officers, police, firefighters and employees.
The mission of the NYC Department for the Aging (DFTA) is "to work for the empowerment, independence, dignity and quality of life of New York City's diverse older adults and for the support of their families through advocacy, education and the coordination and delivery of services."
Preparing for Retirement
There's much to consider when planning your retirement: Have you saved enough? When can you stop working? How long will your money last? The video below will address some of these questions and explain how the AARP Retirement Calculator can help you plan your financial future.
Is age just a number?
When it comes to retirement, your age (and financial planning) can determine how well, or whether you’re able to retire when you want! (Please note that the following is prepared for general information only.)
The most common way to invest money for retirement is to place funds in a 401k Plan, or an Individual Retirement Account (IRA).
Even after you’ve retired, you may want to factor in other considerations while planning for the future, for example, in relation to the financial security of loved ones. Life insurance may be one such factor. The National Association of Insurance Commissioners has designed questions for you to answer to help you decide on the best options.
AARP is a nonprofit, nonpartisan, social welfare organization with a membership of nearly 38 million that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families — such as health care, employment and income security, and protection from financial abuse.
The contents of all material available on www.aarp.org are copyrighted by AARP.
360 Degrees of Financial Literacy is a free resource of the American Institute of CPAs, and offers helpful financial information to retirees.
There are several books and eBooks in our catalog that can help you with retirement planning. You can always search the catalog using keywords such as "retirement", or "retirement planning", but there are also a number of useful subject headings that can be used to find books and eBooks on these topics. You can copy any of the phrases below, paste them into the catalog search bar, and then change the drop down option to "Subject" to find targeted results.
Do you have questions about credit or debt? The Financial Coaching Corps (FCC) can help you manage your money, find resources in a financial crisis, and make progress toward your financial goals.
Make an appointment with a coach from the Financial Coaching Corps of the Community Service Society of NY. At this time all coaching is virtual by phone or Google Meet.
Please select an appointment date and a financial coach will confirm your appointment by e-mail.
If you have questions about financial coaching, email us at firstname.lastname@example.org.
Virtual Financial Coaching is a service of Brooklyn Public Library's partner, Community Service Society.