What Is A Retirement Savings Plan? 
Any program where money is being set aside for retirement would be a retirement savings program . These programs address a fundamental concern . In order to have adequate money in retirement you must shift current spending to capital which can be drawn down in retirement in the form of income . The statistics are alarming . Few properly prepare for retirement . The result is that many must retire on a greatly reduced income , continue working , or seek outside help to sustain themselves . The competition is between providing for current needs and wants and forwarding money into the future for spending in retirement . A retirement savings plan helps you do that . Retirement savings plans come in a wide assortment but can be grouped into plans where the employers match a percentage of the contributions made to the plan by an employee to those where the worker pays the entire amount saved . These plans can be divided into two groups , those which are funded with money after taxes and those which are either withdrawn from payroll or are deductible on a personal income tax return . These types of plans are taxed differently when a person retires so a person should carefully consider their options when opening a retirement savings plan . 