You’re never too young to start saving for retirement. In reality, the longer you have your money in the bank, the more you’ll make in interest.
- Research your savings options. According to the U.S. Department of Labor, the average Social Security payment makes up just 40% of your pre-retirement income. You’ll need to look at other options, too!
- Know what you’ll need. Figure out the lifestyle you want as a retired person, and make your plan accordingly. If you want to spend your money on something big like frequent traveling or you want to pay for your children’s education, you’ll need to make sure you save enough.
- Don’t touch the money you’re saving. Most retirement savings plans make you pay extra if you withdraw your money before a certain age. Plus, you’ll lose the interest you could be making and you may have to pay taxes on that money. If you keep it in your savings plan, you can keep it safe and most likely tax-free.
What plans can I use?
There are financial programs where you can save for retirement. Find out more about these programs now.