Why You Should Start Saving For Retirement in Your 20s
When you’re in your 20s, saving for retirement is probably one of the last things on your mind. Maybe you’re trying to pay off your student loans, focusing on progressing in your career or maybe you have other priorities at hand. You probably assumed you’re too young to deal with the idea and have lots of years to start saving up – so why do it now when you can still enjoy your youth?
Actually, there is a huge benefit to saving for retirement early that you might not be aware of. Keep reading to discover what some of these benefits are, and to gain more of a perspective on the advantages saving young will give you.
Why Should You Start Saving Young?
Starting to save a little bit from an early age can help you land the big bucks over time. The power of compound interest is powerful and often overlooked by young people in today’s society. When you start putting in a little each year from a young age, in a few decades you can end up with more money than you ever thought. That’s because this money you put in gains interest that increases over the years and significantly increases the value of your money.
When Should You Start Saving for Retirement?
Whether you’re 18 or 35, the best time to start saving up for retirement is right now. The earlier you take the step and get the ball rolling, the better off you’ll be. Time is your friend, and taking advantage of it will yield greater results and benefits in the future. So why make excuses and push your plans for the future when saving early will only benefit you?
How Can You Start Saving Young?
There are many ways you can start your retirement savings planning while you’re still young. You can choose from options like contributing to an employer-matched retirement plan, opening an RRSP (Registered Retirement Savings Plan) or TFSA (Tax Free Savings Account), and finding alternative sources of income that will land you more money to invest. Finding another stream of income is among the most creative ways to save for retirement that can bring you money and enjoyment – if you plan well and manage to turn your hobby into a side job.
As the years go on and you progress throughout your career, you may notice an increase in income. As your income increases, you can up your savings to your retirement initiatives and watch as your savings accumulate. So take control of your finances, plan your savings properly, and your future self will thank you for your early savings initiatives. And as an early starter, you can get a head start by learning about these retirement savings tips.
To open a savings account or speak with an advisor who will help you manage your finances and answer your questions and concerns, book a consultation with an expert from Secure Choice LLC. You can reach out through our website or call us at (866) 477-3211.