By Craig Erwin, Ph.D.
How do you accumulate $1.7 million, the amount that Charles Schwab 401(k) account holders say is needed to retire? One of the best things you can do is start saving early. And in order to have money to save, identify ways to cut expenses, like ditching those shopping trips that result in splurges.
The Federal Reserve (America’s central bank) found 62% of people between the ages of 18 and 29 have at least a little something saved for retirement. That may sound promising, but only 28% of those people felt that their savings were on track. Another study found that, of those saving for retirement, 49% started when they were in their 30s or older. That’s way too late. Start now!
One study showed that 39% of people started saving for retirement in their 20s, 25% in their 30s, 15% in their 40s, and 6% in their 50s. Starting to save for retirement in your 50’s means starting a few decades too late. Start saving in your teens or 20s if you want to retire some day.
When did you start saving for retirement? Do you wish you had started earlier? Are you likely to meet your retirement savings goals? When?
For more information on retirement, saving for retirement, and managing your wealth, click on the links below: