No matter if you’re years away from retirement or it’s coming up quick, you should start thinking about retirement savings.
In the world we live in today, there’s only one thing certain: nothing’s certain. This can especially be true when planning for retirement savings.
It’s best to start saving and planning as early as you can for retirement. Since there is a lot of uncertainties about the future and what will be available to younger generations, people have to be proactive now. The sooner you save, the more you’ll be able to enjoy in your golden years.
Here are three things you should consider and help motivate you to start saving for retirement now!
Social Security Isn’t Reliable
Did you know that according to the Social Security Administration, you can’t solely count on social security to retire? It only replaces about 40% of your average income. So, you’ll need to find more money to live comfortably after you retire.
There’s a chance that number goes lower or who knows what else can happen with social security by the time it’s time for you to retire. All we can tell is it’s not enough to retire now and it most likely won’t be when you retire either.
Make Compound Interest Work for You
If you’re not familiar with saving accounts or interest, here’s a run-down of what compound interest. Compound interest is the interest on a loan or deposit based on the initial principal and the accumulated interest. You can think of it as interest on interest. The longer you keep compounding interest, the more you’ll gain.
The best way to get your money working for you is compound interest. There’s different retirement amounts that you can open that will help fund your retirement.
Traditional and Roth IRAs are both options to start saving and making use of compound interest today. Although they are both used to save for retirement and build compound interest, there’s some differences between the two.
No matter what works best for you, utilizing compound interest makes a great impact.
Retire More Comfortably
As soon as you can start saving for your retirement, you’ll be able to live more comfortably in your retirement years. Since people have longer lifespans, it’s crucial to start saving earlier to make sure there’s enough left.
With careful and strategic planning, you can have a comfortable amount in retirement savings make those years the best of your life.