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 relates to knowing the facts about retirement, misperceptions are tantamount 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. Therefore, it is vital to save as much as possible and as early as possible in tax advantaged accounts like the IRAs.

Familiarizing with the facts can held discard widespread fabrications that may drive away some investors from making a wise decision of saving in the IRA.


Almost one-third of Americans in their most important savings years who have not yet opened an IRA account presumes their 401(k) savings will be enough for retirement, as stated in the Retirement survey. However, Fidelity gives a calculated guess that if retirees wish to live comfortably they will need roughly about 80 percent to 100 percent of their pre-retirement income. Investing in an IRA today to augment workplace programs can help investors to ensure their savings will grow continuously and last throughout retirement.


According to one out of four non-IRA investors surveyed and who say they don’t have the funds for the initial investment, the possibility to save even more for retirement may be overwhelming. But getting started devoid of an initial lump sum is as fundamental as setting up automatic monthly payments through a Fidelity SimpleStart IRA.

Actually, younger investors because of the time they have on their sides could benefit the most by building up their savings early. According to the Retirement Trends Survey, approximately two-thirds of young adults have started to save for retirement earlier than age 30. That’s 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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