Save for Retirement
Your financial lifestyle during retirement is largely dependent on the financial decisions you make before retiring. No longer can you count on Social Security and traditional company defined benefit plans to be the cornerstones of your retirement. Instead, you must take steps of your own to provide for your retirement.
Start with your employer's retirement plan. Many plans, especially 401(k) plans, make it easy to save, offer investment flexibility, and enable you to reduce your taxes. Many plans also have provisions for the employer to make contributions on your behalf. Review your plan details and contribute as much as you can—at least enough to get the full employer match.
If you have taken full advantage of company-sponsored plans, and can still afford it, consider contributions to an IRA or Roth IRA. The tax-deferred compounding aspects of these plans enable your funds to grow faster.