It’s Never too Early to Start Saving for Retirement
Well, maybe that title isn’t entirely true. If you’re six and just got $20 for a birthday present, it might be a “tad” bit early to start saving for retirement 60 years in the future. However, if you’re an adult, it’s never too early to start saving for retirement. In fact, the sooner you start the better off you’ll be when the time to retire comes.
Most financial advisors will advise you to begin saving money for retirement when you begin your first job, so it really isn’t too early to begin planning for the future. The fact is, if you begin saving when you begin a job, and save faithfully every month, when you’re ready to retire, you could have saved a good deal of money. If you waited ten years to begin saving, you’d have less money saved in the long run.
Look at it this way, if you retire at age 65 and you live until you’re 90, you’re going to have to live on what you’ve saved for 25 years, and you won’t have a paycheck to help you out. So starting to save when you’re younger will give you that many more years to save, and compound interest on all that you’ve deposited.
Savings options abound when it comes to retirement. There is the traditional 401 (k) that you can start at your place of employment. You can also open an Individual Retirement Account (IRA). There are stocks and bonds, Certificates of Deposit (CDs), and Money Market Accounts. It is advisable that anyone beginning to save for retirement speak with a financial planner to give them the best advice for where to put their hard-earned savings.
Deciding to save money for retirement depends on a number of things:
• Your age when you start saving
• The age you plan to be when you retire
• Whether or not you’re married with a family
• What lifestyle you would be most comfortable with when retirement comes.
Speaking to a financial advisor will help you learn how much money you will need for retirement, how much money you will need to save, and approximately how long that money would last you. You can also find online calculators that will give you similar information.
Everyone agrees that saving for the future is important. Unfortunately not everyone does it. Remember, even if you’re getting close to retirement age, you can still begin to save. While it’s never to early to start saving for retirement, it can be too late. Begin now, regardless of how old you are, and you’ll have more to time to save for the future – your future.