If you’re still many, many years away from retiring, then saving for it now is probably the farthest thing from your mind. Maybe you have other financial goals in mind, such as buying your first home. But saving for other big things doesn’t mean you can’t begin your retirement saving now, either. Even if it’s just a small amount, contributing money to a retirement fund early on can offer several different benefits. Some benefits of saving early for retirement include:
More money saved
Saving money for a longer period of time will result in more money saved—this is an obvious advantage. However, it’s worth pointing out. It can be difficult to see the benefits now, but your future self will thank you. Just imagine how much more carefree and fun your retirement years can be by having a lot more money saved up because you began saving sooner and while you were a young adult.
Although getting a jumpstart on your saving can give you the opportunity to have more money once you finally do retire, there’s also the option of possibly retiring sooner, rather than with more money. If you begin saving for your retirement years 10 (or even 20) years sooner, then you may be able to retire far sooner than you could have possibly imagined. Many people only dream of early retirement, but by saving a lot sooner, it can be a realistic possibility.
You may not have to rely on Social Security
It’s impossible to predict just how the Social Security system will be operating many years from now. Many retirees rely on their Social Security payments to take care of their bills and expenses, but imagine if you wouldn’t have to depend solely on those payments. Having a larger retirement fund from saving sooner can mean not depending solely on those payments, and not being seriously affected by any possible changes in the Social Security system by the time you do retire.
Many young adults just tell themselves that they have plenty of time before they need to begin saving for their retirement. But even if you do have a lot of time, the more you put it off, the more difficult it can be to finally put a retirement savings plan into action. If you wait until you eventually reach the age where you really should start contributing to a retirement fund and it’s no longer considered early saving, you might have another excuse or reason to delay it even more. Before you realize it, your retirement isn’t that far away, and your savings is nowhere near where it should have been. As a result, you may have to end up working through your retirement years, rather than enjoy them. Get a jumpstart on things now—even if your contributions are minimal—and it can help you avoid procrastination.
Are you receiving structured settlement payments and would like to receive your money sooner? Contact Peachtree Financial Solutions today to learn more about selling some or all of your future payments for a lump sum of cash.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.