The oldest baby boomers have already turned 65, and the older population of the U.S. is beginning to swell. The age-65-and-older population grew 18 percent between 2000 and 2011 to 41.4 million senior citizens, according to a recent Administration on Aging report. And these numbers are expected to further balloon over the coming decade as baby boomers continue to reach traditional retirement age. Here’s what retirement looks like for the typical person age 65 or older in the U.S., reports US News and World Report.

Low incomes.

Most retirees have very modest incomes. The median income for people age 65 and older was $27,707 for males and $15,362 for females in 2011. The typical household headed by someone age 65 or older had a median income of $48,538. The median income increased by 2 percent between 2010 and 2011 after adjusting for inflation. Almost 3.6 million elderly people (8.7 percent) lived below the poverty level in 2011.

Reliance on Social Security.

The most common source of retirement income is Social Security, and 86 percent of people age 65 and older receive monthly payments. And Social Security is responsible for 90 percent or more of the income received by 36 percent of beneficiaries. Only about half (52 percent) of retirees receive income from their assets. Even fewer retirees receive monthly payments from private (27 percent) or government (15 percent) pensions. “The boomers will be the first generation to overwhelmingly not receive some sort of guaranteed benefits from employers,” says Ken Dychtwald, president of the consulting firm Age Wave and author of “A New Purpose: Redefining Money, Family, Work, Retirement, and Success.” “We now live in a 401(k) world where people are responsible for our own savings, and baby boomers have not done a very good job. It’s a generation that is going to struggle in old age in the absence of reliable anchors and support systems.”

Continuing to work.

A growing proportion of the older population is continuing to work during the traditional retirement years. Some 18.5 percent of Americans age 65 and older were in the labor force in 2012, according to the Bureau of Labor Statistics, including 24 percent of men and 14 percent of women. Young retirees between ages 65 and 69 are the most likely to be working. “For a lot of people, they literally need to work. Work has also increasingly become connected with the sense of the meaning of life and the purpose of life,” says Marcie Pitt-Catsouphes, director of the Sloan Center on Aging and Work at Boston College. “The same person might have reasons from each of those categories.”

Making it to Medicare.

The older population is much more likely to have health insurance coverage than younger counterparts. Almost all Americans (93 percent) age 65 and older were covered by Medicare in 2011. And 86 percent of retirees also have supplementary coverage that fills in some of the gaps and cost-sharing requirements of traditional Medicare.

Click here for the full story.

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Think it’s impossible to be prepared for retirement? Think again!

Worldwide, an economy of personal ruin has existed for over seven years — true, the stock market in which many of us have put our nest eggs has climbed back and then some, but that might be a mirage! So, as retirement looms, my Caroline and I have made tons of adjustments, many of which are real sacrifices when held against the light of previous decades. In other words, we now have a plan and, because it’s a really great plan, we’ve decided to share it with you, our worried peers.

So first, let’s check in with experts to get a quick feel for the huge retirement dilemma plaguing us boomers. They tell us that American boomers run lean on our 401K plans. Worse, we possess about a sixteenth of what we need should we survive to age 90. Worse-worse, advances in medicine will allow a great many of us to still clock in past age 100. Nuff said?

Carrier Slocomb’s got it figured out …

Now we move on to a question: Are you handy? And, do you own any tools? Good! Have you ever tried building anything? I include bookcases made of cinder blocks to qualify to say yes, or, closet systems, or small Christmas tree decorations?
You have? Excellent!

Next question:, how do you feel about your adult children? Just as importantly, how do they feel about you? I guess the main criteria here are whether or not you all still get along?

Hopefully, the answer is “okay,” because forgive us if we hit home but we’ve worked out the details on how to thrive for less… and your kids are part of the picture.

#1: Plan a scouting mission: no matter where they live, make a short trip to your kids’ places. You’re looking for real estate, but not the kind you’re thinking of. Rather, you’re looking to see what remains of their tractor shed, or the tree and playhouses your grandkids no longer play in. Should none exist then get a good look at their deck. Decks make excellent backups.

#2: What to bring: a tape measure and your creative imagination. Tree houses are fine in warmer climates, but playhouses and sturdy Amish-built sheds are ideal because they can be insulated and made to look really cute (think tiny window-boxes and colorful shutters). Yes, you’re going to rehab the most suitable structure on-site, turning it into a mortgage-free zone for the two of you!

#3: Benefits: Small structures make for quick make-overs. It costs nothing to rehab and decorate 68 square feet of home. Because you’re moving, some stuff goes to those you love in the ‘big house,’ but most furniture gets sold off to restart your shaky finances.

Of course the good news is that you’re still proud homeowners. The bad news is you have to again share a bathroom with your kids.

Follow Carrier online at Thrive or Survive.

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Hard to believe but after 37 years with the Federal Government, I have retired. Most of those years I was designing museum exhibitions for National Park Service visitor centers across the United States. Before the Government I was an art director in New York.

I had planned to retire this year in January as a very big birthday number; one that made 60 look young. But I ran out the door even earlier, in November 2012. Why November? Because late last Spring I received a call from a former colleague and close friend who had retired a little more then a year earlier and had spent the year with his wife first with a month in Oaxaca, Mexico, then on to Paris, Luxembourg, Africa, and finally hiking in northern Spain.

First, you eat: Mitch with Susana Trilling at her cooking school, Seasons of My Heart in Osxaca, Mexico.

The phone conversation went something like this: “After all our travels last year Jane and I are planning to return to Oaxaca for most of January and February but this timeinstead of a B & B we want to rent an apartment. We could get somethingsmaller for the two of us but thought we would rent a place with multi bedrooms and baths and thought you would like to join us. We may have other friends coming down for part of the time we would have the place.” I said yes without hesitating.

Oaxaca has been my “training wheels” for hopefully a new nomadic life. Make no mistake, I love my life at home in the States but I have wanted to return to a free-spirited life like I lived in my early 20s. I have been traveling, including a great trip to Peru several years ago, but the last big open-ended travel adventure was in my mid-20s when I left my job in New York, closed up my apartment and went off to travel in Europe with my then-girlfriend for a Summer and Fall with only one-way tickets. There were many young Americans and Europeans living our lifestyle. We had a shared spirit and would meet and travel together along the way.

Mitch in the village of San Martin Tilcajete with the carver of a jaguar he bought.

Guess what? They’re still out there, but now on average they are in their late 60s. What I found in Oaxaca were Americans and many Canadians who had long traveled to Oaxaca for a month to escape Winter and now on average were there for four to five months.

The part-time expats and some full-time expats are well organized with the Oaxaca Lending Library set up as gringo central. It is a great resource and along with books, it is a place of lectures, a meeting place for organized hikes, movies, bridge, and connecting with fellow travelers with similar interest. This is not the cruise ship or tour crowd. They are well informed and deeply interested in investing time getting to know another culture.

The apartment we rented was closer to being a duplex house and we have the entire upper floor. It has everything we need including a roof terrace with views of the Sierra Madres. I love it here. Situated in Mexico’s southern highlands halfway between Mexico City and Guatemala, Oaxaca is known for its cuisine, weaving, arts, archeological sites, early colonial architecture, Indian culture, and climate. It’s easy to see why it is a World Heritage Site.

Somewhere under there is a burro along the foothills of the Sierra Madre de Oaxaca.

I have traveled the villages and archeological sites out of town, hiked in the Sierra Madres, gone to two cooking schools, visited the museums, sat in the zocolo (the public square) watching the world pass by and listening to music that is everywhere. There have been museum and gallery art show openings that made me think I was back in New York. I have discovered the bohemian late night club scene that on somenights play current French films and on others starting at 11:00 p.m. there’s a circus with acrobats, magician, clown, and jugglers, all to the music of Django Reinhardt, the gypsy jazz guitarist from the 1930’s, pure magic.

Mornings have been my favorite time. I sit in a coffee shop courtyard for about a half-hour, then off to the Oaxaca Institute of Graphic Arts exploring the vast art book collections. After I am inspired by what I pick off the shelf, I go outside, open my sketch book, and draw what I am attracted to.

I will be returning home to my farm in Virginia, riding my horse and taking long naps. But it feels as though I have come full circle.

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When we first announced our new lifestyle through our blog Applecore, we received an incredible response. Many of the comments mixed a little envy with a lot of curiosity about how we were able to accomplish such a thing. Perhaps the most common comment … and most mystified … was, “Why move someplace new every six months?” The answer? We felt six months was the ideal time needed to really get to experience and explore a country.

One of the reasons we left the U. S. was that we realized there were countries where we could live more economically on Mike’s Social Security check of $1,500 a month. From our experience, we learned we could live less expensively someplace for six months than what it would cost us to take a two-week vacation. We need only a one-bedroom place to rent. We do all of our own cooking, cleaning, and laundry. We do not own a vehicle, so we use public transportation. We were able to live in Boquete, Panama, on less than $700-a-month. However, living like a local in Panama is not for everyone. By comparison, we currently live with more comforts in Cuernavaca, Mexico, on a $1,000-a-month budget.

We now experience the more relaxed retired lifestyle while also getting to travel without breaking the bank. When we are not sunbathing near the pool or reading a new book, we use our days to explore the countryside to learn about the people and the culture. Here in Mexico we have taken day trips to cities such as Tepotzlan, Mexico City, and toured the prominent sites in the life of Emiliano Zapata, Mexico’s legendary folk hero. Our current plans include visits to Taxco, which is famous for its silversmiths, Acapulco, the great beach resort city, and the Mayan archeological site of Xochicalco.

One of the priceless aspects of this lifestyle is when a local asks us where we live and we say, “This city is now our home.” They smile and begin to tell us more about their city, their country, and the out-of-the-way places that we should be sure to visit, places that are not in the guidebooks. They tell us the best places to eat, as well as the places to stay away from! Most conversations with the locals end with smiles all around, and we feel that we have made a positive impact with ourgoodwill. Thus, our motto: Don’t make an impact, make a difference.

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As the day begins and the sun turns the snow-capped peaks of the Alps to gold, my husband Dave and I take a leisurely stroll. With our little dog Magic, we walk along the lakefront to our favorite cafe, where for $4 we enjoy steaming cappuccinos and fresh buttery croissants.

Many of our days start like this …

About a year ago, we sold our home and began a new chapter in our lives in northern Italy. We rented an elegant two-bedroom apartment one block from our favorite lake, Maggiore, for just under $1,000 per month.

Verbania, Italy.

Verbania, Italy, where we live, is home to about 31,000 people.

It sits on the western shore at the southern end of the long lake, which snakes up into Switzerland.

An esplanade skirts the lakefront, with cafes and bars galore. A large, tree-studded park hosts concerts in the summer and there’s a sandy beach for swimming and sun bathing. All the amenities you could ask for are here, including a major hospital, doctors, dentists, and pharmacies.

We find life here affordable and the health care system is good. When I do my weekly shopping for groceries I never spend more than $100. Health care is free for European citizens, which covers my husband, as he is a British citizen.

Since I am originally from the West Coast of the U.S., I don’t qualify. However, I can purchase a voluntary Italian health card for one year for about $500, a fraction of what insurance would cost in the U.S. This card gives me the same free access to doctors and hospitals that my husband has. The quality of care is excellent, with Italy being ranked number two, behind France, by the World Health Organization in health care standards.

We live comfortably here and regularly go to concerts, the ballet, and exhibitions. The finest art in the world is on our doorstep, and the history and architecture of this country would take several lifetimes to enjoy. Inexpensive, high-speed trains have taken us to Verona, Florence, and Turin… Next year we’ll explore Rome.

The climate is mild year-round with the exception of July and August, which can be in the high 80s F or low 90s F. There are beautiful gardens where you’ll find rare and exotic plants. One of the most renowned is Villa Taranto, only a 10-minute walk from our front door. This garden was the dream of a Scottish sea captain who imported trees and plants from around the world and built his villa there. A spectacular water garden is the centerpiece, with masses of color and views to the Alps.

Verbania, Italy.

Close by, on the island of Isola Bella, is another wonderful garden—a multi-level, manicured garden with a history that spans several centuries. Here white peacocks strut around displaying their amazing plumage.

If you tire of gardens, you can ride cable cars to craggy mountaintops or take ferries to historical islands with elegant baroque palaces. Last month we took a day-trip to Switzerland on the Centovalli Railway through deep gorges and lush green valleys. The ticket cost slightly less than $100 each, including a three-hour ferry ride back to Verbania from Locarno.

Small, picturesque villages are plentiful on the lakeshore. One of my favorites is Cannobio, which takes only 15 minutes by bus from where we live and is very close to the Swiss border. There is a lovely cafe-lined waterfront promenade and a stunning 15th-century cathedral. Ferries run frequently from here to the Swiss artist colony of Arona and to the larger town of Locarno, in Switzerland, which holds an international film festival each August.

We eagerly await each day here and all the discoveries it will bring … not governed by clocks, deadlines, or spent in traffic.

Catch up on all the great places to explore at InternationalLiving.com.

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By Gary Foreman, CreditCards.com

Q: I’m a baby boomer and concerned about retirement. I thought I could depend on my house and 401k to supplement Social Security, but after the past four years I’m not so sure. I’m only 50, so I probably can recover. Can you help me get to a comfortable retirement?

A: You’re right to be concerned about your retirement. It’s very likely that the rules for retirement will be rewritten in the next 10 years. The concept that everyone retires in their mid-60s and never works again is obsolete. Recognizing that now and making adjustments could make a big difference in your future lifestyle.

It’s widely agreed that the Social Security trust fund is running out of money. If the current funding and payout system stays the same, Social Security’s reserves will be exhausted in 2033, according to the Social Security Administration. After that, taxes will support only about 75% of scheduled benefits.

So unless taxes are raised on younger workers, your benefits will be cut. That means a greater reliance on what you’ve managed to accumulate in private pension plans, 401ks, individual retirement accounts and equity in your home.

There’s no one single thing that you can do to guarantee a comfortable retirement. But there are a number of lifestyle choices and decisions that you can make that will make a big difference in building a retirement nest egg.

Do remember that $1 today will be worth more at retirement. Every dollar you save now will benefit from the multiplier effect of compound interest. Depending on how soon you need it, that dollar could be multiplied two, four or even eight times.

Don’t let pride of ownership lure you into buying overly expensive autos or trading up too frequently. The salesperson always wants to put you into a new ride. Don’t listen. Better to buy a vehicle with lower status and keep it until repairs exceed the value of the car.

Don’t let your children’s or grandchildren’s college deplete your retirement savings. Yes, you rightfully believe in education and want your offspring to have the greatest range of life choices. But, by not helping them pay for an overly expensive school you’re doing them a favor. You’re forcing them to consider both the cost and benefit of their degree choice. They’re less likely to choose an unmarketable major. A bad major could haunt them for years.

Don’t let “living large” today cause you to live very small later. We’re awash in premium products. Everything from breakfast cereals to the homes we live in. And luxury products are much more expensive than the more-typical choices. All those premium choices add up and deplete your savings, too.

Don’t enable others in their financial bad behavior. We all want to help friends and neighbors who have been hurt by the recession. And we should help when we can. But, if we’re giving or lending money to someone who’s not making an effort to bring their expenses in line with income, we’re just delaying the inevitable. Sooner or later they’ll run out of money, both theirs and ours.

Don’t overreach trying to make up for recent losses. Your home may have lost 30% of its market value in the recession. It will likely be decades before you see those prices again. Don’t try to try to adjust your investments to make that up quickly. You’ll be taking on unnecessary risk. You’re still young enough to invest for the long haul.

Don’t panic over changes in your retirement portfolio. Markets will move up and down. After taking some losses, you may feel tempted to pull everything out. Don’t do it. Barring bad fortune, you can expect to live into your 80s. That leaves plenty of time for a balanced portfolio to recover losses.

Don’t underestimate your target. One rough tool used by planners is that you can safely take 5% of your savings each year. So for every $10,000 in income you want, you’ll need to save $200,000.

Don’t assume a traditional retirement. Begin to consider what your retirement might look like. Many boomers are choosing to continue to work part time or to start entirely different careers. In some cases, they’re beginning to lay the foundation now. There will be more options available for boomers as they get into their 60s.

Do take a look at your lifestyle and behaviors to see what might be keeping you from preparing for a comfortable retirement. Saving for retirement isn’t an impossible challenge, even if you’ve taken a hit in the most recent recession. The trick is to remember that it’s not a sprint — it’s a marathon. Make a little progress every month and you’ll cover a lot of ground in 10 or more years!

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As baby boomers begin to retire, they’re going their own way — or ways — when it comes to housing choices and relocation strategies, writes Ana Veciana-Suarez for the Miami Herald.

“As they age, boomers are going to be doing a lot of different things,” says John McIlwain, who just completed a housing report on the generation for the Urban Land Institute. “There’s not going to be just one trend.”

The Florida retirement scene in the 1970s.

That may be especially true in South Florida, where so many residents hail from elsewhere.

South Florida boomers “form a lot of different slices,” says Michael Greene, a Coldwell Banker broker-associate who has worked in the local market for more than 40 years. “Their choices really depend on their particular situation.”

McIlwain’s report, “Housing in America — The Baby Boomers Turn 65,” details how this 78 million-strong generation is creating both challenges and opportunities for the real estate industry. About 10,000 boomers reach Medicare age every day, and the over-65 crowd is predicted to grow 36 percent by the end of this decade, to 54.8 million –up from 40 million in 2010. By 2030, the total will top 72 million.

Because there are so many of them, boomers will affect the housing market for a long time. But how is anybody’s guess. Some will stay in the homes where they raised their children. Others will downsize. Others may move to be closer to family or reduce housing costs down. And the affluent may buy a second home near the kids while keeping the old homestead.

Read more … click here.

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The white paper – based on the attitudes of 1,200 Australians approaching retirement – reveals a massive disconnect between what baby boomers expect their retirement to be like, and what reality has in store.

The survey also reveals a growing reliance on the family home to help close the retirement savings gap, with almost half planning to move house once retired, and more than a quarter expecting to downsize.

Equally surprising is the proportion of unretired over 50s – over a third – identified in the survey as now having (intergenerational) financial dependents.

“So they’re not only funding their own retirement, they’re also entering retirement with debt and/or funding dependents later in life, be it adult kids or elderly parents, ” said a spokesperson.

The white paper reveals that only 14 percent of baby boomers feel financially prepared for retirement, 51 percent say they are somewhat prepared financially, while a further 35 percent described themselves’ as completely unprepared.

The retirement of the baby boomer generation – defined by the Australian Bureau of Statistics (ABS) as those born between 1946 and 1965 and comprising around 25% of Australia’s population – is expected to have a significant bearing on the performance of the Australian economy and asset markets, particularly housing, over the coming decades.

Over the past 40 years, Australia enjoyed a demographic dividend from the large baby boomer cohort entering the workforce. This process generated a population structure optimal for economic growth, whereby the largest segments of Australia’s population were neither young nor old, but in the middle (i.e. working age).

This demographic dividend is illustrated in the next chart, which plots the ratio of the working age population- defined as those aged between 20 and 65 years old – to the non-working age population – defined as those aged under 20 years old and over 65 years old.

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When we got married almost 15 years ago, we wanted to make it something special. So we did a little research and discovered that the Don Carlos Hotel in San Jose, Costa Rica, actually offered wedding packages … including music and champagne!

We couldn’t resist, so we booked the package and, after tying the knot, we rented a tiny SUV and hit the road without any agenda except seeing as much of Costa Rica as we could in two weeks.

It was one of the best trips of our lives, and Costa Rica itself was one of the main reasons. The country is special in so many ways that, even back then when much of the coastal highway was miles of unrelieved washboard and potholes, we couldn’t have started our married life in a better way.

Of course, much has changed since 1997 (including us). Smooth, divided highways have replaced that hellish stretch of coastal road, and many other infrastructure improvements have opened up vast stretches of Costa Rica that were once almost impossible to reach.

But even before the improvements, Costa Rica was a mecca for expat retirees, sportsmen, and adventurers — and for good reasons. With tropical weather, incredible beaches, lush mountains, low cost of living, and a model public health care system, Costa Rica has a brand identity all its own. Thousands of people have left the snow and high prices behind to live there.

So what exactly is the attraction?

Costa Rica has some of the most breathtaking Pacific beaches on the planet, with miles of surf breaks that make its Pacific coast legendary. But Costa Rica is also a world leader in ecological, sustainable development. Much of Costa Rica’s lush, tropical forests are protected natural preserves, and Costa Rica is one of the few countries in the world that set a deadline for being carbon-neutral and is actually nearing that goal.

This combination of natural beauty, sustainable ecological policies, and killer surf has ensured Costa Rica’s niche as one of the most popular tourism and vacation spots on earth, with 1.5 million people visiting this little Central American country each year.

But beyond a sun-drenched week on the beach, what makes living in Costa Rica so attractive?

The debate over health care in the U.S. put Costa Rica and the country’s public health care system in the spotlight. (Remember a particular talk radio host who said he’d move there if Obamacare passed? He hasn’t … but we think he’d be happier and healthier if he did.)

That’s because Costa Rica is one of the healthiest places on earth. In one area of Costa Rica’s Nicoya Peninsula, people have some of the longest lifespans on record. The Costa Rican health care system is highly rated (even higher than the U.S.), with universal health insurance and world-class public and private hospitals. The public health insurance system is known as the CAJA, and all citizens and legal residents are required to participate. For the typical retiree, the cost averages $50 to $65 per month.

No wonder life in Costa Rica is so appealing.

A secluded beach in Costa Rica.

What about other costs? For sure you can live like a rock star in Costa Rica on $4,000 per month. Most expats, though, report that they are living quite happily and without sacrifices on a monthly budget of $1,500 to $2,500. That’s for two people living in a mid-range, two-bedroom home, and includes rent, utilities, transportation and Internet.

You’ll save, too, on the little things that matter the most, but can add up. Like:

• Ticket to see a movie in a modern theater — $5
• Tickets to see a cultural event at the National Theater start at $2
• Ticket to see a National Soccer Team Match in the brand-new stadium — $20
• Fresh Red Snapper — approximately $2.50 per pound
• A pound of beans — $0.90 per pound
• A pound of rice — $0.50 per pound
• Four avocadoes — $2
• Pineapples — $1 each
• A bottle of Imperial beer — $1.25
• A pack of local cigarettes — $2.20
• Bus ride from downtown San Jose to Escazu — $0.55
• Bus ride from San Jose to Jaco Beach (60 miles) — $4.11

But it’s not just the potential cost savings that you should consider… it’s the overall improvement in your quality of life. Better weather. Beautiful scenery. Healthcare that’s not only high quality, but affordable. Less stress. And one more thing…

Sociologists say Costa Ricans are the happiest people on the planet. This is according to the Happy Planet Index, an independent think tank founded to study environmental impact and human well-being. They say: “Costa Ricans report the highest life satisfaction in the world, and have the second-highest average life expectancy of the Americas (second only to Canada).”

Who wouldn’t be happy living in a paradise like this?
 

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“The Saver’s Credit is particularly great because it offers many workers an added incentive to save for their future retirement, while potentially lowering their tax bill today,” said Catherine Collinson, president of the Transamerica Center for Retirement Studies®.

Here’s how it works:

1. Check Your Eligibility

For singles, anyone earning up to $28,750 in 2012 or $29,500 in 2013 is eligible. For the head of a household, the income limit is $43,125 in 2012 or $44,250 in 2013. For those who are married and file a joint return, the income limit is $57,500 in 2012 or $59,000 in 2013. (All income requirements are based on Adjusted Gross Income.)

You must be 18 years or older by January 1 and cannot be a full-time student or be claimed as a dependent on another person’s tax return. If you fit within these parameters, the Saver’s Credit may be for you.

Depending on your filing status and income level, you may qualify for a nonrefundable credit of up to $1,000 (or $2,000 if filing jointly) on your federal income taxes for that year when you contribute to a 401(k), 403(b), 457, 501(c)(18)(D), SEP or SIMPLE plan, or an IRA.

2. Save for Retirement

If your employer offers a retirement plan, make sure you enroll. Or open a traditional or Roth IRA with the financial institution of your choice. If you are enrolled in your employer’s retirement plan, you may already qualify for the credit.

In general, for every dollar you contribute to a qualified retirement plan or IRA, up to the lesser of the limits permitted by an employer-sponsored plan or the IRS, you defer that amount from your current overall taxable income on your federal tax returns.

3. File Your Tax Return and Claim the Credit

When you prepare your federal tax returns, you then claim your Saver’s Credit by subtracting this tax credit from your federal income taxes owed.

If you use a professional tax preparer, ask about the Saver’s Credit, called the “Retirement Savings Contributions Credit” on Forms 1040, 1040A and 1040NR. Or if you use tax preparation software, be sure to use Form 1040, Form 1040A or Form 1040NR to file your return.

The Saver’s Credit is not available with Form 1040EZ, although the IRS has included instructions with the EZ directing you to a different form if you choose to claim the credit.

Lastly, if you prepare your tax returns by hand, start with Form 8880, “Credit for Qualified Retirement Savings Contributions,” to determine your credit rate and corresponding credit amount. Then use Form 1040 or Form 1040A to file your return.

Transfer the amount of the Saver’s Credit from Form 8880 to line 50 of Form 1040, line 32 of Form 1040A or line 47 of Form 1040NR. Have questions? See IRS publication 590, ask a tax professional or log on to the IRS website at www.irs.gov.

The 13th Annual Transamerica Retirement Survey found that just 20 percent of American workers with an annual household income of less than $50,000 are aware that the credit exists. Don’t overlook Uncle Sam’s Saver’s Credit; it may help you pay less in your current federal income taxes while saving for retirement.

For more details on the Saver’s Credit and online retirement planning calculators, visit the Transamerica Center for Retirement Studies® at www.transamericacenter.org.

The Transamerica Center for Retirement Studies® is a non-profit, private foundation.
 

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