In our most recent blog, we discussed different ways you can start saving for retirement in your early 20’s. We are sure you have heard a time or two that you should start saving and planning as early as possible, but is there a real benefit to starting in your 20’s instead of your 30’s or 40’s? The answer is yes. Planning and saving for retirement involves much more than just investing in variable or immediate annuities. If you are just getting your career started in Orlando, here are a few reasons why you should consider starting to save for retirement now.
You Will Save More Money
This may seem pretty obvious, but many people do not understand how big of a difference even 10 years of savings can make. Several people hold off on saving for retirement thinking that they can easily make up the difference later, but that is just not the case. It is almost impossible to catch up on the savings that you didn’t make and when you start saving can make a huge difference on how much you will accumulate over the years. According to 360financialliteracy.org, if you start saving 2% at the age of 20, you will have accumulated $174,931 by the age 65. If you start at the age of 30, you will have only accumulated $121,510. This is a huge difference and all it takes is saving at an early age.
It Does Not Get Easier to Save As You Get Older
Many times, young adults do not start saving when they should because money tends to be tighter when they are kick-starting their careers. However, if you are just getting started in the workforce, now is the best time to start saving. Saving does not get easier as you get older. If anything, it becomes more difficult. As you age, you will take on more financial responsibilities. In your early 20’s money may seem tight, however, comparatively, you have far fewer responsibilities than you would in your 30’s. Saving now sets you up for success in the future and reinforces responsible habits.
If you have questions about saving and planning for retirement, please do not hesitate to contact the team of experts at Annuity Genius.