Retirement planning is an issue that affects anyone with an income and a bank account. Millennials who have built up savings accounts since their teens are seeing the benefits of saving money. Most banks and financial institutions have programs that teens and college students can get started in right away. There are many options available to help millennials saving for retirement.
Retirement is Not a Central Topic
The reality is that retirement is not a central topic of discussion for young people. They are thinking more about getting jobs and starting new careers instead of retiring. Many assume that this issue only affects people in their 50s or 60s. Some assume that they don’t have the time to plan for retirement, while others claim that it costs money, which they cannot afford at the moment.
More Groups Are Contacting Millennials
Many young people are being recruited for these services on social media sites, in online targeted ads and through financial-related school programs. They will find a large collection of tips and guides online to help them choose the right retirement plan. In fact, young people are encouraged to open a Roth IRA, which is a tax-free individual retirement account.
Some banks, schools and other organizations provide courses for people of all ages and socioeconomic backgrounds. Affordable retirement planning courses are available to those in need of short- or long-term assistance. Some courses are taught either online or in a classroom.
Through these courses, future retirees learn more about Medicare and Social Security benefits. They are given an overview of the benefits and the recommended times when they should apply. In addition, they learn about the different types of IRA retirement accounts: Roth, simple and traditional. They also learn about the types of investments that could benefit their accounts.
In addition to courses, there are online calculators that people use to plan for retirement. They type in a wide range of personal information that includes age, income and determined retirement age. Then, they receive an estimate of the amount that an individual needs to retire successfully.
More Millennials Are Seeing the Importance of Retirement Planning
Many financial companies and nonprofit organizations are active in reaching out to high school students, college students, and new graduates. They want to prepare the new generations by teaching good, basic skills in financial management. They provide a wide range of services to help young people manage their budgets, student loan debts, credit card debts and many other issues. Many millennials have jobs and personal savings accounts, so they already know how important it is to plan ahead. At the most basic level, they are enrolled in 401(k) programs that deduct and save money from their paychecks.
Early Planning Is Important
The reality is that life expectancies are increasing and more people are living into their 80s and 90s. In addition, the rates of age-related diseases are high, so many people are retiring earlier than they expected. Planning for retirement is optional, but it’s highly recommended for young members of this new generation. They will save enough money to retire comfortably and retire early if they act very responsibly.
Yes, I think it is better for the millennials to not just think about retirement planning, but actually to do it. It is about time to learn from the generations ahead of them, like the baby boomers who, as the statistics show, are not ready for retirement. They have plenty of time to plan and prepare for their future. Hopefully, they would grab that opportunity to save for what matters in the future, such as healthcare. Though they can have Medicare, and even a Medicare supplement plan, in retirement, having reserved funds and back up plan is a great idea to help them manage a possible crisis brought about by aging.
Securing a fail-safe retirement plan is imperative today. But, how? Planning early for retirement is highly recommend today given that age-related diseases are high, more people retire early, and more people are living longer, which means more people will most likely require any form of long term care. Millennials can start exploring different types of income-generating investments that can help build their retirement funds while they plan on settling down and buying a home. They shouldn’t let distractions slow down their retirement planning. Millennials should be more active in securing and strengthening their retirement plan through long-term savings and short-term emergency funds and also by exploring different types of insurance products like health insurance, long term care insurance and life insurance.
You always present super interesting analogies in your post!
Thanks for sharing the research and all of your hard work in putting the list together.
I guess I have a hard time feeling sorry for people who don’t bother saving for the future. I was a single parent with medical debt and 3 jobs, found a way to go back to school, pay off my debts while supporting myself and my child, financed 3 college degrees, built an excellent career, and put my kid through college with zero undergrad debt. It took sacrifices and determination, and no vacations, new smart phones, cable TV, takeout, or daily lattes. Through it all, I always maxed out my 401(k). Now I can afford everything I need, and most of what I want want, and I still max out plan contributions in addition to market investments. It’s not rocket science, it’s discipline, and If I can do it, anyone can.