With today’s economy, it may seem tempting to stop contributing to your 401k, especially if you need extra cash in each paycheck.  Don’t do it!!  Although it may be nice to have a few extra dollars in each check, you should continue to think about the future.  When you retire, beyond Social Security, you will only have what you manage to save up until that point.  When you think about the situation this way it may seem even scarier.  The Social Security system in our country is not operating very efficiently, and may not even be around when those from the younger generation are old enough to retire.

Although many people feel that they will be able to count on their Social Security income, it may not be there when they need it.  Your retirement account is like your security blanket.  If you can sacrifice a little today, you will be able to avoid working until you are 80 years old.  If you have no retirement account, and there is no Social Security, you will not have anything to fall back on when you do reach retirement age.

If you are afraid that you may need the money that you are contributing to your retirement fund for an emergency.  Why not consider a Roth IRA rather than a traditional 401K.  With a Roth IRA, you will be able to withdraw your contributions should an emergency arise, although your contributions are not tax deductible.

photo source: Eqilshay