According to a recent "Retirement Trends" survey by Fidelity Investments, 96 percent of Americans saving for retirements don’t know the current contribution limit for an individual retirement account, with some guessing as low as $1,000. The truth is that for tax year 2005, the IRA contribution limits swell to $5,000 compared to $3,000 in 2004.

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When it boils down to understanding certain facts about retirements, erroneous interpretations can mean lost opportunities. Today’s workers will meet mounting health care costs together with diminishing pension benefits and a higher cost of living when they retire. Which is why it is necessary to save as much as possible on the earliest possible time in tax advantaged accounts such as IRAs.



Getting acquainted with the facts can help disperse universal myths that may discourage many investors from investing wisely in an 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 guesses that for retirees to live comfortably, they will need 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 without an initial lump sum is as easy 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. As gathered by the Retirement Trends survey, practically two-thirds of young adults have set off to save for retirement ahead of 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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