Retirement Advice For Millennials
On: 21st June, 2016 // By: admin
Understanding Needs Versus Wants and Other Retirement Advice That Will Get You Started Saving
You may have heard the dire news that 80 percent of employed Millennials under the age of 30 expect to be worse off than their parents in their retirement years, according to a study conducted by Willis Towers Watson. So, should you panic? It’s possible that you should be making some changes, particularly if you identify with that 80 percent or if you have not yet begun saving for retirement. There’s some tried-and-true retirement advice you should follow, seasoned with some specific advice for Millennials:
Get some perspective. Many Millennials will cite student loan bills and limited job options as reasons to delay retirement savings. It may be possible, though, that some Millennials are part of the over half still living with their parents for another reason: you can’t give up the lifestyle you want to live that is beyond your means.
If you take time to consider the refugees camped out in places like Greece and Turkey, fleeing the conflict in Syria, and the sacrifices they are making to create a better life for their families, you may be in a better position to define your needs versus wants. Many people in the Western culture, no matter their generation, are driven to have the appearance of wealth while they struggle to make ends meet. Retirement savings are not a want or a luxury. You need to prioritize saving for the future over things like a new car payment or eating out.
Start small. It’s hard to reign in your lifestyle while you watch your friends and colleagues make purchases and seemingly enjoy the good life. Making small steps toward retirement savings will help you, because you’ll see your savings grow as you gradually make changes to how you prioritize your money. Soon, you’ll have the confidence to value your investment in the future more than having enjoyment in the present.
Stop the cycle. In many cases, Millennials have taken out student debt in large amounts, with plans to go into a field that will never support the payments. It’s unfortunate that tuition has become so inflated, but you are at a critical crossroads. Solid retirement advice dictates that you stop the cycle. Take on a second job if you need to do it, and pay off the debt before you make another big purchase. Otherwise, you will be caught in a pattern that snowballs over time. If you wait until you get married and start a family, it will only get harder to get your debt under control and begin saving for retirement.
Don’t despair. You’re young and time is on your side. You can start habits now that define your money management for the rest of your life and allow you to retire in great shape. If your employer has a 401(k), start investing, even if it’s a small amount. If you typically eat out twice a week, consider pulling back to eating out once a week and have that amount directed to your 401(k) account.
For more retirement advice customized to your age and circumstances, make an appointment at Aura Wealth Advisors. With extensive experience assisting clients with investment growth, diversified portfolios and retirement planning, Aura Wealth Advisors can help you get started creating a strategy that works with your budget and provides you with a great retirement.