When it comes to retirement, the sooner you start saving, the better. It’s an undeniable truth that the younger a person is when they begin putting away money for retirement, the easier it is to create a sizable, sustainable nest egg for the post-work years.
It’s not always easy and life can get in the way. However, setting financial goals and sticking to them – no matter what age you are – will ensure that the end of your career is something to look forward to, not dread.
Face The Facts
The average age of retirement has risen in the last decade, from 63 in 2002 to age 66, and these numbers are expected to continue rising. Financial concerns are at the top of the list of reasons for this change. Thirty-three percent of homeowners aged 30-59 years old have stated that they won’t have enough money to retire until age 70.
For some, retirement isn’t even something they’re considering. In fact, a 2011 AARP study found that 40 percent of Baby Boomers plan to work “until they drop.”
With the unknown future of Social Security and the needs of an aging population to address, taking steps to ensure that you (and often times, your partner) will be financially stable is an investment you must make. Not only will it give you peace of mind, these savings can sustain you no matter what happens. Because, for many, it’s not only how much, it’s what the savings are for in retirement.
Covering The Bases
It’s not easy to guess what costs you’ll need to cover, but without a doubt, retirement savings are used for more than just daily living. Health care costs are a major expense. A study by Fidelity found that “a 65-year old couple retiring this year will need an average a total of $220,000 (in today’s dollars) to cover medical expenses throughout retirement.”
Add those kind of big numbers to expenses such as mortgages or existing debt and adding to an HSA or IRA looks more appealing every year. However, according to the U.S. Department of Labor, fewer than half of Americans have calculated how much they need to save for retirement.
Reality Doesn’t Have to be Intimidating
This six-part series will cover methods for retirement saving for every decade of a working person’s life. We’ll also examine the perceived roadblocks (or – ahem, excuses) that come up throughout life. Stayed tuned for tried-and-true information and methods for navigating your way to financial success that can serve you until your golden years.
We know this is scary. We know it might be hard. But we know, together, we can make this happen. How can we be so sure? We’ve done it for hundreds of our members already. So consider this your retirement wake up call.