For many higher income clients, the need to find additional ways to save for retirement has become one of their biggest concerns. If the client’s employer offers it, qualified plans such as 401(k) plans provide an excellent way to save for retirement. High-income earners are disadvantaged in that the portion of their income that can be set aside in a traditional tax-advantaged manner is smaller. These clients need to find additional ways of saving, especially since the length of retirement has increased along with the average life expectancy.
Where will your retirement money come from? If you’re like most people, qualified-retirement plans, Social Security, and personal savings and investments are expected to play a role. Once you have estimated the amount of money you may need for retirement, a sound approach involves taking a close look at your potential retirement-income sources.