Saving for retirement is something you don't want to procrastinate, because the sooner you start, the greater the potential benefits of compounding interest in your account.
As we get older, we understand there are things we should be doing, or should be getting better at, and are vaguely aware of strategies we should be implementing throughout our adulthood. Some of these things have a heavy financial focus, and if they are topics we don’t truly understand or deem them too difficult for the moment, they get pushed onto a to-do list for our future selves.
One of the major tasks many 20 or 30-somethings decide to wait on is planning for retirement. I get it, something that is 40 years away is not at the forefront of your mind when you see this week's paycheck hit your account. You need to focus on this months bills, student loan payments, saving for a down payment on a house, saving for a wedding, paying childcare expenses, paying off your credit card… the list goes on.
Retirement for millennials seems far away, but because of the changing landscape of retirement income, saving should start now.
What will retirement look like for the millennial generation? This may seem like a loaded question, and full of unknowns, and that’s because it is. We are looking at three to four decades of time passing before the millennial generation embarks on retirement, during which, a lot of change can happen. Changes to Social Security, Medicare, and cost of living are all inevitable, and changes we won’t be able to predict accurately at this time.
For the sake of this piece, we are going to go on what we know today, and the generation that is currently retiring, the Baby Boomers.