There are many things in life that change as we get older.
As we age, our needs, wants, and obligations alter and we eventually retire from our jobs. Although the concept of retirement sounds great, it may be nothing more than a pipe dream if you don’t have sufficient money to fund it.
Many people live with monetary anguish and wish that they had better money management skills in their younger years. Not saving for retirement is one of the biggest regrets that retirees deal with. Among Millennials, 11 percent are worried about not saving early enough for retirement while 18% of Gen X are worried about this same thing followed by 39 perfect of Baby Boomers (Source).
Saving Is Never a Bad Thing
Saving money isn’t easy and requires a great deal of discipline. By starting a retirement savings account early on in life, you will have a longer period of time to contribute.
Turning to others, such as family, for financial support can be difficult on both parties involved which is why having a decent savings account is essential in all stages of life, especially retirement.
Once you retire, there are other types of hurdles to overcome. You may have a variety of expenses such as:
- Medical bills
- Assisted care costs
- A mortgage
- Cost of a spouse’s funeral
- Any existing investments
While saving money for retirement is difficult for many, it can be impossible for some due to their salary. According to a recent study, 76 percent of Americans live paycheck to paycheck and 27 perfect of them have no savings at all (Source).
How to Start Saving For Retirement
It’s beneficial to start saving for old age as soon as you can, with the perfect age being your mid 20’s.
Putting aside as much as you can afford, whether that is $50, $100, or $300 a month, will drastically help when you are older. Many times, an employer will assist you with a 401 k match which will become accessible once you retire. Many times, the amount that you can contribute depends on your personal financial situation and you can only put in so much as bills and obligations get in the way.
In order to save, we must be in the mindset that it is not ‘option’, it is mandatory.
Starting to save is the hardest part but once you realize that is it essential to contribute to a savings and retirement account, it becomes easier to put that money aside each month. Remember that starting small is fine and any little bit counts. As your income increases, consider putting more into retirement in order to have a sufficient lump sum come retirement.