Oak Brook, Ill. -- The Illinois Municipal Retirement Fund (IMRF) encourages workers to consider online services and apps as supplements to traditional savings strategies during National Save for Retirement Week (Oct. 16-22).
Nearly half of working American households have no retirement savings, and the median retirement account balance is only $2,500 for all working-age households, according to the National Institute on Retirement Security (NIRS). Even as the baby-boom generation approaches retirement, participation in pension plans has declined since the recession.
“Today’s economy can make it impossible to set money aside,” said IMRF Executive Director Louis W. Kosiba. "Through advances in technology, new tools emerge every day to help individuals capitalize on opportunities to save and take steps toward a more secure retirement.”
IMRF – the second-largest and best-funded statewide public pension plan – is an independently managed and prudently run pension with nearly $34.5 billion in assets. As a long-term investor with a diversified portfolio, IMRF serves more than 174,000 active members and 118,000 retirees today.
The plan identified five ways individuals can boost their retirement savings using the latest technology:
- Budget to Save: Regular retirement account contributions are imperative. Many financial planners recommend allocating retirement savings before any additional transfers or purchases for maximum results. For example, IMRF members contribute 4.5 percent of their income through payroll deductions. Smartphone apps can help members and non-members who want to save more for retirement.
- Embrace Automation: Many employers allow workers to route earnings into more than one bank account. Upon completion of a retirement savings budget, employees can customize their allocations. Experts say that automatic transfers can reduce spending temptation.
- Take Advantage of “Free Money”: In addition to traditional newspaper and direct mail coupons, millions of consumers are finding money-saving deals online. Many retailers have digital coupons accessible through mobile web services or customized apps. Some browser extensions and third-party services offer coupons and rebates on purchases. Whether retired or almost retired, these discounts can help with “rainy day” savings, vacations, hobbies or special projects.
- Invest Wisely: Financial consultants recommend diversified investment portfolios for optimal returns. In fact, IMRF’s investments team relies on managers who invest in domestic equity, international equity, fixed income, real estate and alternative options. Members, retirees and non-members who are seeking digital choices can download investment apps with flexible participation options.
- Be Your Own Financial Planner: In 2016, the do-it-yourself planner has more resources available than ever before. Instead of the sole option of scanning the daily financial pages, individuals can receive business news and market information in real time. With online tools and calculators, people all across Illinois can explore their options and customize their savings.
IMRF assists members with pre-retirement information through Personal Benefits Reviews and workshops throughout the year. Member Services partners with professionals to offer annual financial literacy workshops to retirees statewide. The IMRF website also features digital account access and online calculators with unlimited input options to help create customized pension estimates.
“Think about your retirement beyond National Save for Retirement Week,” said Kosiba. “The process doesn’t need to be complex or a burden. New apps and online services can help create unique and ongoing opportunities to save and watch your nest egg grow.”
