A recent survey conducted by Fidelity Investments, 96% of Americans who are saving for retirement don’t realize the present contribution ceiling for an individual retirement account, with some guessing as low as $1,000. The fact is that for tax year 2005, IRA contribution limits go up to $4,000 from $3,000 in 2004.

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When it comes to recognizing the facts about retirement, misconceptions can result to missed opportunities. Today’s workers will meet mounting health care costs together with diminishing pension benefits and a higher cost of living when they retire. Thus, it is important to save as early and as much as possible in tax privileged accounts similar to the IRAs.



Knowing the facts can help dispel common myths that may keep some investors from making the smart move of saving in an IRA.





According to the Retirement Trends survey just about one-third of Americans in their prime savings years who have not invested in an IRA account yet consider their 401(k) savings sufficient for retirement. However, Fidelity estimates that retirees will need approximately 80 percent to 100 percent of their pre-retirement income to live comfortably. `But Fidelity calculates that retirees will require approximately 80 percent to 100 percent of their pre- retirement income to live contentedly. 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.





Out of four surveyed non-IRS owners who say they can’t come up with the money for the initial investment, for one of them, opportunities to save all the more for retirement may be discouraging. On the other hand, opening an account even without monthly payments is as uncomplicated as arranging automatic monthly payments via a FidelitySimpleStart IRA.



The fact is that younger investors have time on their sides, which should give them more reasons to start saving early. Nearly two-thirds of young adults have started to save for retirement before age 30, according to the Retirement Trends survey. That’s good news; it means that commencing to save as early as possible is one of the best schemes to gear up for the future.



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