Why Millennials Should Plan for Retirement
May 23, 2023
Millennials should plan for retirement so they avoid issues down the line with affordability and other complications. Retirement can feel far away when you're in the thick of your career, but it's never too early to start saving. Prioritizing your retirement plan is a surefire way to save a generous nest egg for your golden years. Doing so may require a little sacrifice while you're earning.
The Case for Millennials to Plan for Retirement
Is it worth saving so much money when you can enjoy it now? Millennials should consider this as they plan their lives.
Retirement Is the Time for Adventure
As you consider when to start planning for retirement, remember that your post-work life can be whatever you want. There are plenty of perks to retirement. Some of them include:
- Traveling to exotic places
- Seeing fine art museums and performances
- Hiking and visiting national parks
- Cooking new dishes
- Trying new hobbies
If you want to experience adventure, you need the funds. A solid retirement strategy ensures you have enough to go on that cruise or tour you've always dreamed about.
Generous assets also mean you'll have more to give friends and family. For example, you can contribute toward your grandchildren's college funds or weddings. You can also provide lovely gifts, such as all-expenses-paid vacations and down payments for houses and new cars. Finally, you can leave your loved ones a hefty estate to ensure they're cared for when you're gone.
Social Security Won't Be Enough
Social security is a valuable resource during retirement, but Millennials shouldn't use it as their only source of income. First, it only pays a portion of your earned income — 40%, to be exact. Additionally, the retirement age is 67, which means you'll need another income source if you plan to retire before then. Finally, Congress can adjust benefit amounts and retirement age, so you shouldn't bank on the current setup.
What if you don't plan to retire early? You should still consider social security only one aspect of retirement planning, as many factors can force you to leave the workforce before you plan. Unfortunately, you can lose your job through layoffs. People sometimes must become full-time caregivers to their parents or loved ones. Also, some might develop a disability that prevents them from working.
Saving for Retirement Early Means Peace of Mind
Early retirement planning gives you ample time to "make up" for periods you couldn't save as much as you wanted or your portfolio took a hit. Additionally, the longer funds sit in your retirement account, the more compound interest they earn. If you procrastinate saving, you're missing out on free money.
What if you've calculated how much money you need to retire? Should you continue to save after meeting your goals? Even if you feel set for your preferred retirement lifestyle, it's a good idea to keep building that nest egg. You never know if you'll encounter medical, house repair, or other bills, and having a little extra means you don't have to lean on the family to pick up the slack.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.