Five Facts Young People Should Know About Retirement Planning

Have you ever thought of your life after retirement? At the young age, no one thinks for the future, but it becomes a necessity when he or she comes to the age of 40. According to the latest surveys, “young people are least likely to plan ahead; they are in fact least bothered about long term planning for saving money”. Most of them have a slight knowledge about retirement planning. And, they are probably to keep money in a safe investment like cash, which would be difficult to save enough for the retirement.

Talking about the present situation, there are many seniors who are facing miserable financial future while other people of this generation are facing problem to build wealth despite their high income. If young people think upon the retirement life, there is a need to plan in advance rather than keeping it pending for the upcoming years.

A little bit of motivation is required to plan for a retirement. Look at the five retirement tips that would help you in guiding towards a right path for best retirement plan:

Delay Retirement

Earlier, there were people who dreamed of retiring at an age of 55 years. Presently, people are more likely to put off their retirement age until 60s. But, for the upcoming years you need to wait even longer, might be around 70s because of the high level of the student debt.

Social Security is Secure Than you Might Realize

The young generation has a positive approach towards social security. Only a few people know about this that it will be provided after they retire. But, young people are brainy and have a good reason to worry about as according to the social security funds which state that, “ There will be a drastic fall in this plan in the upcoming year 2033”. Don’t worry! Though there are chances of funds going to deplete, it will provide approximately 75% of scheduled benefits with the money and the taxes. 

Many People Are Not Saving for Retirement

Though they know that there is a dire need to start earlier to save money for retirement, yet they show their callous attitude towards it. Only a few are saving for the future and the others have many reasons such as high debt, various financial plans thereby not having extra cash to put aside.

Less Saving

According to Employee Benefits for Research Institute, “34% of the Americans save less than the $1,000 and the left 23% save in less than $10,000. Until the young minds search and step up in a profitable plan, they won’t be able to plan well for their future goals. 

 

Stock Market

Stock market has a crucial role in retirement planning. It offers large amounts at one go. Though there is a big chance of losing but as you are young, you can easily recover from these dips. If young people are uncomfortable with the stock market, there are probabilities that they have to face difficulties while planning for future.

It’s never too late to start saving for retirement. After knowing five essential tips that would help you to plan a better retirement, make a wise decision.

Inspired by the retirement planning tips, you can anytime consult retirement planning company that would help you in directing you towards right financial goals.