Most people think they are ready for retirement or plan to save for it. However, many people, including those approaching retirement age, don't have enough savings set aside for retirement. It can be difficult to know where to start or what your options are.
Whether you're just starting to plan or are nearing the time to turn your savings into retirement income, HSBC's personalized approach and products can help you work on your financial goal planning to fund your retirement. When considering any options for retirement planning, you should also consult your own tax advisor who can provide advice in light of your specific facts and circumstances.
The importance of saving and investing for retirement
Your happiness and well-being in retirement can depend on how well you plan for it. It's easy to let other things take priority over retirement savings, especially when retirement feels like it is a long way off. In order to work towards a financially secure retirement, it helps to begin saving up long before you stop working.
Assume you’ll need 80% of your current annual income each year that you are retired, and that you will be retired for 30 years. Based on your current salary, you can calculate your retirement savings goal to figure out how much you may need to save to live in retirement.
The earlier you start to save, the more likely you may be to achieve your retirement goals. If you can’t start early in life, then start saving as soon as you can.
Setting your retirement and saving goals can give you financial confidence. Research indicates that people who are more confident in their retirement savings may feel happier, less stressed, and better able to sleep at night. We can help you map out a plan.
Invest for retirement
When you invest money for retirement, that money potentially earns returns. You may end up with more in your retirement fund than if you had simply set the money aside in cash or in a savings account. Reach out to an HSBC Financial Professional to discuss your retirement investments.
Maximize your savings
- Take full advantage of your 401(k) employer match program.
- Contribute monthly into a regular or Roth IRA. Learn more about HSBC’s IRAs.
- Max out your contributions to your IRA and/or employer match programs.
The IRS sets a limit to how much you can contribute to retirement accounts annually. Depending upon your individual situation, maxing out your contributions to pre-tax retirement accounts may be a good goal. You’ll pay less in taxes now, and it may help you save toward meeting your goals.
Commonly asked questions
How do pre-tax contributions at work?
How do after-tax contributions work?
Connect with a Financial Professional
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All decisions regarding the tax implications of your investment(s) should be made in consultation with your independent tax advisor.
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1 Financial professional refers to Financial Consultants (FCs), Investment Counselors (ICs), and High Net Worth Relationship Managers (HNWRMs). All offer bank products through HSBC Bank (USA) N.A., investments and certain insurance products, including annuities, are offered through HSBC Securities (USA) Inc. and traditional insurance products are offered through HSBC Insurance Agency (USA) Inc.
4 HSBC refers to HSBC Bank USA, N.A., HSBC Securities (USA) Inc. and HSBC Insurance Agency (USA) Inc. HSBC Bank USA, N.A. provides banking products and services. HSBC Securities (USA) Inc. provides investment products and services and is an affiliate of HSBC Bank USA, N.A. HSBC Insurance Agency (USA) Inc. provides insurance products and services and is a wholly owned subsidiary of HSBC Bank USA, N.A.