Whether you’re currently in your very first job after school (at any level) or several years into your career, saving for retirement should be given some thought. It might feel like years — even decades — away, but time will fly!
It also sounds like a big, confusing and overwhelming task. It can feel like that, but it doesn’t need to be.
Here’s some advice on how to get yourself started for the long road ahead.
1. The best time to start is today.
It doesn’t matter how old you are or how far into your career you might be; this is the best time to start setting aside money for your future. It might only be a little, but that will add up! The sooner you start, the longer your money will earn interest, and those pennies will turn into dollars.
2. Get an idea of how much you’d like to save before you retire.
You won’t have all the same expenses as a retiree as you do as a working person, but the general guidance is you will need about 70-90% of what you bring home now.
3. Know that Social Security won’t be enough to live on alone.
The world has changed since Social Security was created in 1935. That’s an understatement, honestly. The cost of living is higher, our health care is more expensive even for healthy people, and we’re living longer now. With that in mind, understand that you’ll need to save more than your parents and/or grandparents to be comfortable after you stop working.
4. Enroll in your employer’s retirement program.
Some companies offer a 401(k) program or a pension to help you save for the future. Sign up as soon as you can and contribute as much as you can. If your employer has a matching program — they’ll put in the same percentage of your pay as you do, usually up to a certain amount — take advantage of that as quickly as possible. This is almost like free money they’re giving you, but it’s part of your benefits program, and you’re entitled to take advantage of it. Plus, by contributing right out of your paycheck, you won’t even miss it.
If you have access to one through your employer, set up a conversation with a financial advisor. They can help you set goals and get a better sense of where you want to be when you’re ready to retire. They can help figure out the best way to invest your money and make it work for you when the time comes for you to enjoy the fruits of your labor.
Plan for a Better Future
Is all this talk of the future making you think about where you want to be? If the time has come to change jobs, call Davis Staffing. We partner with great companies who can help you meet all your career — and financial! — goals. Call Davis Staffing today, and let’s get started on your bright future.