Retirement Savings

July 8, 2007
401k Plan
I currently save 8% of my salary in my 401k plan at work. I should get a raise in two months and I will increase my savings to at least 11%. My current balance is $59,690. I have competing priorities 1.) pay off credit cards and, 2.) increase my retirement savings. Unfortunately, right now they are mutually exclusive and it is hard to do both. In a perfect world I would have no debt and max out my 401k. I wish. My employer kicks in 25 cents on every 401k dollar up to 6%. It is free money and I do try to get the max employer match that I can.
Pension Plan
I am fortunate to still be covered under a pension plan at work. I am fully vested and the cash balance in it is $17,975. My employer puts in 4% of my eligible salary each year and also contributes an interest component. Last year I earned 4.73% interest on the balance. I am not eligible to receive any funds from my pension until I am 62 so there is no telling if those funds will even be around.
Traditional and Roth IRAs
As of July 6, 2007 the balances in my traditional and roth IRAs were $21,213 and $4,531, respectively. I contribute $100 each month to my roth, which is not a lot but it is at least something.
As you can see I have a long way to go with my retirement savings to get caught up.