For Immediate Release
Communications Director & Public Information Officer
Colorado State Treasurer Dave Young urges Employees to Begin Planning Their Retirement during National Retirement Security Month
More than 40% of our private-sector workforce does not have access to a retirement savings plan at work
DENVER, CO: Today, Colorado State Treasurer Dave Young speaks about the importance of saving early and planning ahead.
“Life is exciting, and you always have a choice to make when it comes to spending or saving. However, with every choice you make, you may also choose not to do something else.” said Dave Young, Colorado State Treasurer. “Milestones often seem far away, but life comes at you fast. So if buying a home, paying for education, and having a healthy retirement are goals of yours, then saving for them now has to be a priority.”
“In times of economic hardship, it can be especially difficult to set money aside. That’s why it’s especially important to save when times are good, so that you have money to fall back on when you may need it in the future.” mentioned Hunter Railey, Colorado SecureSavings Program Director. “
If your employer facilitates Colorado SecureSavings, they will add you to the program and you’ll receive a notice from us. After 30 days, you’ll be enrolled automatically and start saving right away, with the money going into a default investment selection based on your date of retirement. If you’re self-employed or don’t work for an employer registered with Colorado SecureSavings, you can sign yourself up and contribute directly to your IRA via automatic contributions from your bank account. Participation in Colorado SecureSavings is completely voluntary for you. You can opt-out or back in whenever it works best for you.
What is a Roth IRA?
A Roth IRA is an Individual Retirement Account that helps you reduce your taxes once you retire. While you’re working, you pay your usual income tax on the money you earn and deposit it into your Roth IRA. Your Roth IRA earns money (interest and/or dividends), and that money is constantly added to your contributions. When you retire and start taking money out of your Roth IRA (like you’re paying yourself), there are no taxes. In other words, all the interest that your account earns over the years is tax-free. And that’s a big deal. For even more details on Roth IRAs, you can visit the Internal Revenue Service (IRS) website here.
When reaching life’s major milestones, you often have the choice to either save in advance or go into debt. Ultimately, saving early and saving enough is very important, and should be factored into your monthly budget.