Do you save enough for retirement? Will the savings good enough to help you maintain your current lifestyle? Will you be able to take a vacation now and then and not worry about spending on the trip? More importantly, do these questions bother you from time to time?

If the answer is yes, then you have come to the right place to find out exactly how you can make the most of some of the best retirement savings plans available in the market. You must understand that it is not merely enough to stash cash away in a safe deposit box hoping it will be sufficient for the future.

Most people are falsely comforted by the fact that they will get a pension to tide them over during retirement. However, the Government Accountability Office estimates that over 29% of the population above the age of 55 don’t get a pension and also don’t have a backup retirement plan in place.

Retirement planning is a combination of saving and investing. The more you save, the better will be your total investment. The better you invest, the higher will be your return on income. The cycle of saving, investing, and reinvesting is a continuous process and need not necessarily stop even after retirement.

How much is enough?
Often it is the question of ‘ how much to save’ rather than ‘ how to’ that will keep you awake most nights. But before you can figure out how much to save from here on, find out exactly what you have in the first place. You must save with the best retirement savings plans at different ages for starters.

Popular options include a 401(k), 403(b), Individual Retirement Accounts, and health savings accounts. There is no hard and fast rule as to how much should be invested in some of the best retirement savings plans. However, you must plan your investments to have at least nine or eleven times the salary you got during your tenure.

An overview of popular types of retirement savings account

401(k) and 403(b)
It is one of the best retirement savings accounts you can avail during the course of your employment. The deductions are beneficial from a taxation point of view. Also, the pretax savings are phenomenal and you have the option to reinvesting it further in individual retirement accounts. The contribution limits and retirement benefits will vary depending on your age and the limit for the current assessment year will vary depending on the type of taxpayer. Note that married couples will benefit as a joint filer. You can check out the official website of the Internal Revenue Service (IRS) to find out more about the contribution limits, rules, and regulations.

Individual Retirement Accounts (IRA)
For a better tax saving option, invest more in individual retirement accounts. You will not pay taxes for any gains on the investments made as the contributions are tax-deferred. An IRA account also allows you to diversify your investments better among assets like stocks, bonds, mutual funds, and electronically transferred funds. A diverse portfolio will yield better income for you to save more for retirement. Also, the distributions can be withdrawn only after you have attained the age of fifty-nine and a half. Any withdrawals made before will be subject to a 10% penalty and certain federal taxes.

Roth IRA
Roth Individual Retirement Accounts take tax-saving to the next level as any income earned from investments previously made in a Roth IRA will never be taxable thereafter. You can also withdraw contributions made to the account without being subject to any penalty, fees or Federal taxes. It is considered among one of the best retirement savings accounts, as a Roth IRA will allow you to save quickly for retirement.

SEP IRA
A Simplified Employee Pension IRA account is beneficial if you are self-employed or own a small business. Most of the best retirement savings accounts are reserved for employees only. However, a SEP IRA is an exception that allows you to make contributions for retirement as an employer.

You can always consult a financial expert to find the best retirement planning options.