Based on recent “Retirement Trends” survey by Fidelity Investments, 96 percent of Americans saving for retirement don’t have any idea of the current contribution limit for an individual retirement account, with a few guessing as low as $1,000. The reality is that for tax year 2005, IRA contribution limits increase to $4,000 -- up from $3,000 in 2004.

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When it relates to knowing the facts about retirement, misperceptions are tantamount to missed opportunities. Today’s workers will meet mounting health care costs together with diminishing pension benefits and a higher cost of living when they retire. Therefore, it is vital to save as much as possible and as early as possible in tax advantaged accounts like the 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. On the other hand, Fidelity quotes about 80 percent to 100 percent of income prior to retirement will be needed by retirees in order to live sufficiently. Investing in an IRA today to augment workplace programs can help investors to ensure their savings will grow continuously and last throughout retirement.

For the one in four non-IRA owners surveyed who say they can't afford the initial investment required to open an IRA, opportunities to save even more for retirement may be daunting. But getting started devoid of an initial lump sum is as fundamental as setting up automatic monthly payments through a Fidelity SimpleStart IRA.

The younger the investor, the more benefits will be realized if they start to invest early. Almost two-thirds of young adults have begun to investment for retirement before reaching age 30 as reported by the Retirement Trends Survey. 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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