Sign upIf you’re not already signed up to save through your employer’s retirement plan, now is the time to start! When you contribute to your plan, the money comes out before you get paid, so it’s out of sight, out of mind, and an easy way to save.

Start early, start strongThe earlier you start saving, the more time your money has to work for you. “But what about my college loans,” you ask, “and all my other expenses?” Important, yes, but so is being able to replace your income in retirement so that you can live on your own terms.

If you can, start saving at 10%. If that doesn’t fit in your budget, start smaller and increase your contributions over time.

Increase graduallyEvery year, you should consider bumping up your deferrals by one or two percent. You won’t notice it now, but it could make a big difference when it’s time to retire. The earlier you start, the more time you have to ease in to increasing your contributions.

Make the most of matchingIf your plan offers a matching contribution, start there. For example, let’s say your employer offers to match 5% of your contributions, but you’re only contributing 2%. That’s like throwing away extra money. You wouldn’t throw it away if someone handed you cash, right? Think of matching contributions the same way.

Diversify your portfolioWhen choosing your investments, it’s a good idea to find your balancing point – that’s where you’re pursuing your financial goals at a level of risk that feels comfortable for you. Finding that balance is a core part of any investing strategy – especially if you’re investing for a long-term goal like retirement.

Some retirement plans offer pre-built asset allocation strategies (based on risk tolerance) or target date funds (based on expected retirement year) to make investment selection and diversification easier. Keep in mind that neither asset allocation nor diversification protect against loss in a declining market. Check with your plan administrator for more information about these features.

National Save for Retirement Week 2014Retirement readiness checklistJ.R.R. Tolkien famously wrote that “not all those who wander are lost,” but when it comes to your retirement, it’s best to have a plan. Not sure if you’re on the right track? In honor of National Save for Retirement Week, here are some easy ways to make sure you’re making the most of your retirement potential.

Continued

RS5482 914 C:34468-00

© 2014 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) [of which Retirement Services is a division] and its affiliated companies and sales representatives.

Don’t take withdrawalsRetirement means savings, but it’s not a bank account and shouldn’t be treated that way. If you withdraw money early you’ll be taxed at least 10% by the federal government, and possibly more depending on your state and its rules for early withdrawal. You’re likely to find that the access to “easy money” isn’t really worth what it’ll cost you in the long run.

Think of it like this: your retirement is the biggest purchase you’ll ever make. Your chances of having the retirement you want will depend on what you can afford, so it’s definitely something worth saving up for!

“But what if it’s too late?” you ask. “I’m too close to retirement to start early and increase my deferrals gradually.” Not to worry – there are still steps you can take to maximize your retirement savings potential.

Take advantage of catch-up contributionsIndividuals age 50 or over at the end of the calendar year are eligible to make annual catch-up contributions. In 2014, you can contribute up to an additional $5,500. See your plan administrator for more information.

Take stock of where you areLog on to www.massmutual.com/retirementaccess and use the Retirement Goal Planner tool to run a projection. The tool will help you see where you are, and how likely you are to replace your income in retirement based on your current assets and savings habits.

Optimize Social SecurityWhen can you start taking Social Security benefits? Age 62. When should you? It depends on a lot of things – your health, medical history, current cash needs, and future financial obligations, to name a few. But one thing is certain: the longer you delay your application (up to age 70, which yields the maximum payment based on your earnings), the bigger your benefit will be. Find out what your benefit could be using the Social Security Administration’s Retirement Estimator at ssa.gov/estimator.

Be realisticKnowing where you stand is the first step toward maximizing your retirement savings. If you’re not sure where you stand, our online estimators and calculators are a great place to start. You may also benefit from the help of a financial planner.

No matter where you are on the journey, these simple actions can help you move toward a retirement that’s on your terms. Log on or call today for more information, or to get started.

Online

www.massmutual.com/retirementaccess

By phone

1-800-854-0647

Customer service representatives are available from 9:00 a.m. to 8:00 p.m. ET, Monday through Friday.