How the Saver’s Tax Credit Can Boost Your Retirement Savings

Source: National Institute on Retirement Security and the Pension Rights Center, 2016

The average retirement benefit from Social Security may not be enough to pay for your expenses during retirement. The federal government encourages low-income earners to save for retirement through a tax credit called the Saver’s Credit. It is a non-refundable tax credit for individuals who make under $30,750 or married couples who make under $61,500 a year. Only 25 percent of those eligible for the Saver’s Credit based on their income take advantage of the credit.