What Age Should You Start Saving For Retirement?
March 10, 2020 | Louis Tully
Thinking about saving for retirement is never too early. The more you do now to prepare for your future, the more relaxed you’ll feel when you actually get there. It may seem like a lot to deal with and seem daunting to start. With all the bills and expenses you already have, piling on saving for retirement seems impossible. But it is actually not hard at all to start. It may take some adjusting to, but come retirement, you could be in a really sweet spot where you don’t have to worry yourself with your finances. But why should and how do you start saving for retirement?
What Are The Benefits Of Saving For Retirement?
Of course, the obvious benefit is the financial stability you are giving yourself in the future. But there are other benefits to saving for retirement. For starters, you won’t rely on just Social Security to be your only source of income once you hit retirement. On average, Social Security covered roughly $1,471 per month in 2019. Some retirees received more if they started collecting theirs at an older age – such as 70 years old. If you don’t plan on working till you are 70, then you can expect around $1,000 - $2,000 monthly from Social Security. If that is your only source of income, it could end up being a tight retirement for you.
Another benefit of saving for retirement is the ability to carry those assets from one job to the next. If you leave your current job – or even lose your current job – you don’t have to worry about losing any funds you set aside – like your 401K, for example. You are also eligible for credit when you participate in programs such as 401K and your IRA.
How Much Should I Save For Retirement?
So now that you know the benefits, how much should you be saving? Well, depending on how early you start saving – the ideal age being 25 – you would want to save around 10% of your paycheck every month – that way you will be able to reach a million or more by the time you retire – if you retire at age 65. And if choose to have a 401K or an IRA, you’ll have to save half of that.
How Do I Start Saving For Retirement?
Saving for retirement is actually really easy. Taking steps like setting up a savings account at the bank is a great place to start. Another good place to start is contributing to a 401K. If your job has 401K’s available for its employees, chances are they also price match. So, if you put in 3% of your paycheck towards your 401K, your job will match it. You could also open an IRA. With an IRA, your contributions may be tax-deductible, and your interests will remain untaxed until you start making withdrawals when you retire. And finally, cutting back on spending any time you can and putting any extra cash into your savings will ensure a nice retirement fund.
If You Need Some Extra Help, Title Loans Could Be Your Solution
You are never too young to start saving for retirement. While it may seem difficult, you have options that can be a big help. A title loan from Wisconsin Auto Title Loans can be what you need to kickstart your savings for retirement. The process is simple. Just start by filling out our online form and we will give you a call to tell you what else needs to be done.