According to a recent "Retirement Trends" survey by Fidelity Investments, 96 percent of Americans saving for retirements don%u2019t know the current contribution limit for an individual retirement account, with some guessing as low as $1,000. The truth is that for tax year 2005, the IRA contribution limits swell to $5,000 compared to $3,000 in 2004.

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When it relates to knowing the facts about retirement, misperceptions are tantamount to missed opportunities. Today%u2019s workers will meet mounting health care costs together with diminishing pension benefits and a higher cost of living when they retire. Therefore, it is vital to save as much as possible and as early as possible in tax advantaged accounts like the IRAs.

 

Getting acquainted with the facts can help disperse universal myths that may discourage many investors from investing wisely in an IRA.





About one-third of Americans in their primary savings years have not yet opened an IRA account thinking their 401(k) savings will be ample for retirement, as reported by the Retirement Trends survey. On the other hand, Fidelity quotes about 80 percent to 100 percent of income prior to retirement will be needed by retirees in order to live sufficiently. By means of an IRA now to enhance workplace programs can provide investors with a guarantee that their savings will keep on growing and last throughout retirement.





For one in four non-IRA owners who were asked and said they can%u2019t afford the opening investment, opportunities to save further for retirement maybe intimidating. But getting started devoid of an initial lump sum is as fundamental as setting up automatic monthly payments through a Fidelity SimpleStart IRA.



The truth is that younger investors could benefit the most by starting to save early because they have time on their side. As gathered by the Retirement Trends survey, practically two-thirds of young adults have set off to save for retirement ahead of age 30. That%u2019s good news: getting a head start on savings is actually one of the best ways of getting ready for the future.





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