Are you one of the 42% of millennials that hasn’t started saving for retirement yet? If you’re a member of the millennial generation you’ve probably been told many times that you should be saving for your retirement—so what’s stopping you?
Understanding why can be the best motivation to kick your retirement planning up a gear! There are two main goals behind starting your retirement saving early, the first is to ensure that you’re financially secure throughout your retirement, the second is to help you retire at the age you want to. Starting early could be the difference between retiring at 50, 60 or even 70, and being able to afford the retirement lifestyle you dream of!
There are many options you can choose from when planning how you’re going to save for your retirement, we’ve chosen four to get your saving plan started today:
Pay off your credit card balance every month
Credit cards frequently have one of the highest interest rates of any type of debt. A balance left on your credit card, even if only for a month, will quickly accrue interest in addition to the original debt. This extra expense can easily be avoided by paying off the entire balance every month; you can then use the money you save by not paying additional interest towards your retirement savings.
Take advantage of employer contributions
Contribution matching is where your employer will match your savings contributions from your paycheck up to a certain percentage of your salary. If you’re employer offers a retirement savings plan you should contribute as much as you can comfortably afford, especially if they offer contribution matching. It’s amazing how quickly employer match contributions can add up and make a significant contribution to your savings. Not taking advantage of a matching service is almost like sacrificing part of your salary and receiving nothing in return!
Learn about your investment options
Investing any spare income is a great way to boost your retirement savings. Investments often offer a much higher interest rate than standard savings accounts. However, it’s essential that you make educated decisions when choosing where to invest. Whether you seek professional advice or learn about investing yourself be sure that you take the time to understand what makes a solid investment choice.
Invest in life insurance
Life insurance can play a number of roles in your retirement planning. Life insurance is often used to protect your loved ones financially should you pass away unexpectedly. Think about this: would your loved ones be able to afford to retire without your income and contributions to the retirement plan? If the answer is no then a life insurance policy could replace your financial contributions to ensure that they will be able to afford to comfortably retire when they want to. Whole life insurance plans, which are also known as permanent life insurance policies, also offer a range of tax and interest benefits that can make them a solid choice for a retirement portfolio.
Start your retirement planning now for a happy and comfortable retirement!