Regardless of your age, it is never too early to start saving for retirement. Being financially secure for retirement doesn’t just happen overnight, it takes a good plan and commitment to stick to that plan. Did you know that around half of Americans have not calculated how much they need to save for retirement? The average American spends around 20 years in retirement, that’s a lot to plan for. It may seem daunting to save enough money for 20 years, but with a few simple tips, you can do it.
- Start saving now
If you have not started saving yet, now is the time, and if you are currently saving, keep going! Start saving a small amount each month with the goal of increasing it a little bit each following month. Before you know it you will see your savings grow! The main thing is having a plan and sticking to it, and it is never too early or too late to start saving.
- Know your needs
Like we said before, the average American spends 20 years in retirement, and that can add up. The goal is to maintain your standard of living once you retire, which is usually between 70%-90% of your preretirement income. Plan ahead and know your retirement goals.
- Use your employer’s retirement plan
Most employers nowadays will offer a retirement plan or a 401k. If your employer does offer a retirement plan, contribute as much as you can to it. Overtime the compound interest will make a huge difference.
- Don’t touch your retirement savings
It can be tempting to tap into your retirement, but anytime you withdraw from your savings, you are losing out on all of the interest you would gain.
Retirement may seem far off, or too big of a hill to climb, but coming up with a plan now and sticking to it will help you out immensely when it comes time for retirement. If you would like to explore retirement options, or want to come up with a retirement plan and calculate how much you should be saving, contact us today to set up an appointment with one of our bankers who can walk you through the retirement process.