The best way to save for retirement is to start now.
Follow the money.
Sage advice when determining what is important to a person.
Unfortunately, when following the money trail of many Millennials, retirement saving does not seem important to them.
According to a recent CNBC article titled “Nearly half of millennials haven't starting saving for retirement,” 41 percent of Millennials ages 17 to 35 have not begun saving for retirement.
Many claim they cannot afford to put money aside from living expenses into retirement savings.
It does seem there is a downward trend on wages.
The median household income for Millennials is $48,000.
Baby Boomers made almost 20 percent more at this age.
What does this mean?
Millennials may have to delay when they retire.
Many believe they will have to work until age 70 to have enough money saved.
Some good news, from the Bureau of Labor and Statistics?
Wages are starting to rise.
As they rise, how do Millennials tend to spend this increased income?
Many work to pay back student debt and others travel.
When investing, many Millennials are investing internationally.
As the economy changes, Millennials are not the only ones affected.
Baby Boomers also remain vigilent over their retirement savings and investments.
Unlike Millennials, 73 percent are investing for retirement.
Even so, even Baby Boomers believe they will need to work a few extra years and possibly maintain a higher allocation in equities closer to retirement ... if they want to retire comfortably.
Rising health care costs seem to be a major factor.
Whatever your age, you should be saving for retirement.
It would be wise to work with an experienced financial planner and estate planning attorney regarding your goals and how to best meet them.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: CNBC (September 5, 2017) “Nearly half of millennials haven't starting saving for retirement”