I think it’s time we have a serious chat about retirement, more specifically saving for retirement. Now, I’m not that old (though I refuse to tell you how old because a true lady never reveals her age #ThanksGrandma) so saving for my retirement is not something that I spend a lot of time thinking about. Which, if you think about it is a little ridiculous considering that when I’m ready to start thinking about it, it will probably be too late.
It Turns Out… Many Millenials Don’t Save For Retirement
If saving for retirement isn’t at the top of your to do list, you are not alone. According to a survey done by LendEDU found that a whopping 37 of millennials are not saving for retirement. And, of those that are, they put away an average of $480 per month into their retirement accounts (making it a yearly average of $5,760).
Finally, that same study found that this group spends more money on dining out and entertainment expenses monthly than they do on retirement savings… priorities people (… I totally get it). This can backfire badly when you reach retirement age, especially if you find yourself in need of care. If you’ve ever had to use a site like careforfamily.com.au to find care for an elderly parent, you’ll know that it’s more than worth saving up for. Savings will significantly improve your quality of life, even if you’re only putting a little away per month. In any case, if you are one of the 37 percent of millennials that don’t save for retirement, or you’re in the group of those that spend more money on entertainment expenses than saving it’s not too late!
How Much Should You Be Saving for Retirement?
One of the most common questions people as when it comes to saving for retirement is how much should you be saving? The short answer is — as much as you can. Vague, I know. The truth is, the more money that you put into retirement savings, the more money you’ll have when it comes to using it. If you would ever like some guidance regarding how much you should be saving, and how you can go about achieving this, you could talk to professional retirement plan advisors and get some expert input to make your chance of succeeding with your savings all the more likely.
Pro Tip: Try to up your savings into your retirement count every-so-often, like once every six months or year. That way you’re consistently adding more and presumably, you could be making more money due to increased pay (i.e., raises) to help counter-act the additional savings.
Also, Take Advantage of Work Contributions
If you have a retirement savings plan through work, you should whole-heartedly take advantage of it. Especially if it happens to have an employer contribution matching program because free money!
The Realities of Saving for Retirement
Sure, saving for retirement doesn’t seem like a big deal today. But the older you get, the faster retirement comes. Before you know it, you’ll be in your late 60s wanting to spend your days hanging out in a rocking chair with your significant other sipping coffee (or wine) while you watch the sun go down in the distance… except that if you don’t start saving you might end up spending that same evening greeting customers at your local Walmart.
No matter how far off into the distance retirement seems, it’s never too late to start saving for it. Seriously, you’ll thank me later!
When did you start saving for retirement? Share it with me in the comments below.
Looking for More Money Insights?
- Millennials: Living Frugal and Enjoying Life
- How to Become an Extreme Couponer
- Can Konmari Save Me Money?
Tae started out as a journalist before following the money into the corporate world. But it turns out that the grass isn’t always greener and now you can find her spending most of her time writing about all the things she loves. Namely, money, travel and business with a hefty dose of self-deprecating humor. She is a podcast fanatic, blogging aficionado and loves to find new ways to turn passions into cold hard cash!