You’re Young Why Care About Retirement?

You’re 20 or 30 something, you won’t be retiring for another 30 or more years, why should you worry about retirement yet, you have plenty of time…ouch.

Wrong attitude.   That’s the same attitude folks approaching retirement today had thirty or forty years ago when they were 20 or 30 something.   They are now realizing that they made an irreversible mistake.

Reality Check

People nearing retirement are realizing that they should have stayed out of debt, started retirement planning sooner and saved more money.   Since they were nonchalant about those things, they are very worried about their future.    They worry about never being able to afford retirement or finding part-time work if they are forced to retire early.

It may be too late for them but not for you.   Here is the reality for people who did not plan for their retirement.

  • Social Security

Social security benefits may not be enough to provide the financial support they need.   It may not even support their current lifestyle let alone a “dream retirement lifestyle”.   They may have to continue working just to pay for their basic needs; housing, food, clothing.

  • Retirement Plans

Pensions and retirement plans have dramatically dropped in value.   The retirement income they were counting on for financial support may not be enough.

They realize now that if they had saved more money when they had the chance during their working years they would not be in the financial dilemma they are in.

  • It is never too early to plan retirement

    courtesy of bizjournals

    Home Value

Thanks to the recession, home values have plummeted.   The home was the one asset that most people thought would guarantee them a nice retirement income.   The plan was to build up the home value, sell it for a profit and live off the proceeds of that sale.   That’s not happening; the housing market has tanked, with little hope of a quick recovery.   There are more sellers than buyers.

Taxes and maintenance may cost more than many people can afford.  The drop in retirement plan values and the small social security benefit payments don’t help either.

Avoid Financial Ignorance

Ignoring retirement because you are only twenty or thirty something is not the way to avoid financial mistakes.   Take the time to do some retirement planning so it doesn’t turn into a chore when you get older.

Don’t be afraid to do the math; many people are.   A retirement calculator will help you with your math.

Retirement calculators will simply help you set a ballpark figure.  The sooner you determine how much you will need to save  to afford retirement when you reach retirement age the better.