More Americans are enjoying life well into their 80s and 90s. This means if you stop working in your 60s, you could be retired for 20 or 30 years or more! Will you have enough saved to support a 20+ year retirement?
A successful retirement takes careful financial planning. And the sooner you start putting money away for this, the better.
The first decision you must make, is to make saving for your retirement a priority. This should be included in your budget and considered as much of a priority as your routine expenses are today.
Saving hard-earned money is never an easy task. But the importance of saving cannot be understated. Contributing to an employer-sponsored retirement plan or directing a percentage of each paycheck into a savings account, is a great option to start saving. If money from your paycheck never makes it into your checking account, you’re less likely to spend it.
Putting away a small percentage of each paycheck, can grow into a substantial amount. Increasing that percentage by just 1% each year can greatly increase the balance of an IRA, 401k, or other savings vehicles. Employees fortunate enough to be eligible for an employer match are given even more incentive to save for retirement.
Saving for retirement now may be difficult, but few retirees say they saved too much. Most retirees wish they had saved more.
For tips on understanding the importance of saving, what options are available and how to begin, check out our Founders book “RetireEase: A Practical Guide to Help You Keep Your Financial Focus”.