Are you worried about your retirement savings? You’re not alone! A lot of people are concerned that they won’t have enough money saved up to live comfortably in their golden years. But don’t worry, there are a lot of things you can do to save money for retirement.
Invest Early
As a general rule of thumb, the earlier you start investing, the better. This is because you’ll have more time for your money to grow. For example, let’s say you start investing $200 per month into a retirement account when you’re 25 years old. Assuming an annual return rate of eight percent, you’ll have saved over $500,000 by the time you’re 65.
However, if you wait until you’re 35 to start investing, you’ll only have saved about $250,000 – even though you’re investing the same amount of money per month. This is why it’s essential to start saving for retirement as early as possible.
Open Up a Retirement Account
There are a lot of different retirement accounts you can choose from, so it’s important to do your research and figure out which one is right for you. For example, a 401(k) is a good option if your employer offers matching contributions. Alternatively, you could open an IRA (Individual Retirement Account) or invest in a taxable brokerage account. This will help you prepare for your golden years better.
Save More Money
If you want to retire comfortably, you need to start saving as much money as you can. A good rule of thumb is to save at least 15 percent of your income each year. However, if you’re behind on your retirement savings, you may need to save even more than that. For example, if you’re 40 years old and only have $50,000 saved for retirement, you’ll need to save about $33,333 per year to catch up. This may seem like a lot of money, but starting somewhere is great. Even if you can only afford to save a few hundred dollars per month, that’s still better than nothing.
The Takeaway
Everything in life costs money, even taking a piss. So obviously, we’re going to need money in our retirement years as well. No one wants to be a burden on their children or grandchildren, so it’s necessary to start saving for retirement now. Use the tips above to help you get started, and before you know it, you’ll have a nice nest egg saved up for your golden years. Thanks for reading.