The Importance of Saving for Retirement
Some of us fail to see the big benefits of saving for retirement. We want to believe that our Social Security system will keep us healthy and thriving during our retirement years. But the sad fact is most retirees cannot live on Social Security alone. They do not get enough money each month to cover their everyday expenses.
Do you see how this could be a major problem when it comes time to retire?
Instead of having to choose between putting food on the table or paying for life-saving medications, you can have it both and live comfortably during your golden years.
How so? Begin saving for retirement right now. It’s a lot easier than you think and if you’re young enough, you could potentially wind up a millionaire because slow and steady wins the race.
Major benefits of saving for retirement include:
- Saving for retirement is easy when you’re young and you have more disposable income
- Retire the way you want to and do it on your own terms
- Retire early and leave the rat race behind forever while you’re still young
- Foregoing saving for retirement becomes a major life regret for those who fail to plan for their future
Learn about the value of these benefits in greater detail below.
It’s Easy and Beneficial to Save for Retirement While You’re Young
Most of us like to live it up and have fun while we’re young. We have lots of disposable income and very little responsibility. This leads to wasting money that could be used to set up your retirement future forever.
Instead of throwing all of your money away on nightclubs, bars, and clothes in your 20s, you should think about socking a portion of your money away to begin building your nest egg.
Did you know that if you put $6000 a year in an IRA account that earns 8% per year for 35 years, you’d have more than $1 million to your name? If you start saving this money and investing it in an IRA account at 25, you can effectively retire when you turn 60. This is perfect because IRA distributions begin at 59 ½ years old.
You’ll be a millionaire at this point and you also have Social Security payments coming within the next 2 to 5 years, depending on when you decide to take them.
You’ll never have to worry about money again as long as you play your cards right and live comfortably but frugally.
Retire on Your Own Terms However You See Fit
The great thing about saving for retirement is that it gives you options. Having money allows you to make choices that you don’t have when you’re forced to work every day to earn a living.
As an example, let’s say you want to retire at age 60 and move to Florida. You live in Ohio right now and your job doesn’t offer you any kind of pension, so you have to continue working for the time being.
If you had saved for retirement starting in your 20s and consistently put money into a 401(k) or IRA account, you’d likely have a very healthy nest egg on your hands at this point in time.
Instead of being forced to remain at your job in Ohio, you can actually live your dream life and move to Florida and buy a brand-new house in Fort Lauderdale, Boca Raton, or any other part of the state that you desire to live in.
Don’t let your current employment hold you back from living the life that you’ve always wanted. Begin saving for retirement right now because it opens doors financially that will forever remain closed if you decide to forgo building a healthy retirement nest egg.
Leave the Rat Race behind at a Time of Your Choosing by Retiring Early
Speaking of options, the great thing about saving money for retirement is it opens the door to the possibility of retiring early. No one is saying you have to retire early or trying to force you to leave your position at work. You may love your job and want to remain there forever and that’s certainly something to be applauded.
At the same time, would it be better to have the option to retire early if you choose to do so? Would you rather have enough money available to support you, your spouse, and your loved ones without having to go to work when you’re older and tired of the daily grind? Wouldn’t it be nice to be able to rest, relax, and lead a leisurely life taking care of your grandchildren, playing pinochle with your friends, and enjoying other activities when you’d normally be working?
Choosing early retirement is a wonderful option to have. You never know when you’ll finally get sick and tired of going to work every day. So, begin saving for your retirement as soon as possible, because the earlier you start, the more money you’ll have due to compounding interest over time.
Many Retirees Regret Not Saving Money for Retirement
I assume you do not want to wake up every day in retirement and regret not saving for this crucial stage in your life. It’s always better to put money aside so that you have it available to support you during the twilight years of your life.
You might not have the health or strength to work and earn a paycheck at this point in time. Without this retirement savings keeping you afloat, your life could become very difficult to manage as you try to pay your mortgage or rent, medical bills, and day-to-day expenses. Don’t put yourself in this situation and begin saving for retirement right now.
As you can see, it’s incredibly important to save money for retirement to keep you afloat when you no longer choose to or are incapable of working. A healthy retirement nest egg gives you lots of opportunities as well. You can retire early, you can move to wherever you decide throughout the country, and you can open all kinds of doors that remain shut when money isn’t available to you.
Do yourself a favor and begin saving for retirement as soon as possible.