Catherine M. Censullo CPA
One Minute Tax Tip


A lot of people think that there is some sort of rocket science to planning for your retirement.  Did you ever think about it that way?  But it really doesn't need to be that complicated for you.

The biggest problem is getting started and then sticking with your plan going forward.

I know that I always feel better when I have looked at putting together a long term plan and then taking the steps to get me there.  Do you feel that way, too?

Because so many people have failed to do this, the United States is faced with a real retirement savings crisis in the coming years. 

Did you know that:

  • 36% of Americans have nothing saved for their retirement,
  • 14% of Baby Boomers (age 65 and older) have no retirement savings even though they are at retirement age, and
  • 60% of workers have saved less than $25,000 for their retirement.*

This is a terrible crisis that will carry a big price tag for many people.

Years ago, when most companies had defined benefit plans, and your employer put away money for your retirement, this was not as serious a problem.  But the number of employers who still have these plans in place is dwindling to a select few.  Are you lucky enough to have one of these plans?

Social Security is not enough for you to live on, and the future of benefits is in question.  If you look at your most recent Social Security Statement, you will see the following statement on the front page:

"... the Social Security system is facing serious financial problems, and action is needed soon to make sure the system will be sound when today's younger workers are ready for retirement.  Without changes, in 2033 the Social Security Trust Fund will be able to pay only about 77 cents for each dollar of scheduled benefits."

This is not a comforting thought if you are planning to have this money in the future.  Does that statement make you feel warm and cozy? 

If you haven't started planning, don't wait another minute.  The earlier you start, the more you can take advantage of compound interest to see your money grow.

There are many ways for you to set up an automatic savings plan to get you started:

  • Set up regular contributions to your employer's 401(k), 403(b), or 457(b) retirement plan
  • Take advantage of your employer's matching contributions
  • Set up your own SEP-IRA account if you are self-employed and make monthly contributions
  • Set up your own IRA or Roth IRA account and make automatic monthly contributions

And even if you are well set for retirement, make sure your children and grandchildren understand the importance of doing this for themselves as well.  If they are just getting started, make sure they begin saving for their retirement as soon as they start working.  I can't stress enough how important this will be for our future generations.

If you want to work on starting or improving your plan, please do not hesitate to call the office at 914-997-7724 and set up an appointment.

*Statistics quoted by Ed Slott and Company LLC based on surveys conducted by and the Employee Benefit Research Institute and Greenwald & Associates.


Catherine M. Censullo, CPA

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