Savings Bonds – The Best Savings for Retirement

 Statistics show that the average person at the age of sixty five spends an average of eighteen years in retirement. Experts say that for those that are in the middle class and earn a good amount of money are estimated to need seventy to eighty percent of pre-retirement income to maintain the standard of living that they are used to once they stop working. For lower tier earners, about ninety percent is needed. This is of course under the assumption that certain costs like commuting expenses would be cut out. But what I believe is the best savings for retirement is to use savings bonds instead of dipping your hands into your personal bank account.

Why do I think that using savings bonds is the best savings for retirement? The main reason that makes me think that this is the best savings for retirement is that you can avoid dipping into your retirement accounts too early by using the earnings from the savings bonds. It also provides the advantage of being able to defer paying taxes on the interest that these savings bonds earn until you are able to redeem them.

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