If you’re a young adult, saving for retirement is likely the last thing on your mind. After all, there might be other things that you want to save for, such as a down payment on a home. But just because you’re saving up for other financial goals doesn’t mean you can’t start saving for retirement now, either. Even if you just start saving a little bit, there are plenty of benefits of getting a head start on your retirement savings. Some of the following reasons to begin saving early for retirement include:
Many young people who think about retirement just tell themselves that they have plenty of time to start saving. While this may be so, the more you put off beginning to save, the harder it can be to start. Once you’re finally at the age that you really need to buckle down and begin saving, you might find another reason or excuse to postpone saving for retirement. Before you know it, your retirement can be right around the corner, but you don’t have nearly as much saved as you need. By procrastinating, you may end up working through your golden years instead of being able to retire. By getting into the habit of saving early on for retirement, you’ll avoid procrastination.
It may seem like an obvious one, but the sooner you begin saving for retirement, the more money you’ll have when it’s finally time to retire. Imagine how much more enjoyable your retirement can be by having a much larger retirement fund because you began saving as a young adult. It can be difficult to think about the benefits of saving for something 30 or 40 years down the road, but you’ll thank yourself once it’s finally time to retire.
Although saving early can allow you to have more money when you finally reach retirement age, there’s also the possibility of retiring early instead. By saving for retirement 10 or 20 years earlier than you initially planned on, you may be able to retire 10 to 20 years sooner. After all, life is short—why not take advantage of an early retirement if you can? By beginning to save up as soon as possible, an early retirement can be a much more realistic possibility.
You may not have to depend on Social Security
There’s no telling how the Social Security system will be many years from now. A lot of retirees depend on their Social Security payments in order to help them get by, but wouldn’t it be great to not have to rely on those payments? By saving earlier and having a larger retirement fund, you could avoid being seriously affected by any Social Security changes by the time your retirement age rolls around.
Do you need extra cash to take care of bills and expenses? If you’re receiving long-term payments from an annuity or structured settlement, Peachtree Financial Solutions may be able to get you the money you need. By selling some or all of your future payments to Peachtree, you can receive your cash sooner and in one lump sum. To learn more about selling future payments for a lump sum of cash, contact Peachtree Financial Solutions today.
Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.