It’s surprising, even shocking, that with all of the attention devoted to an aging society and the need to save for retirement, that so few people are inspired to get started; and then save so little. Many do have a doom and gloom attitude about retirement. Myths aren't helping matters.
Retirement myth #2: I’ll never be able to save enough for retirement.
That may seem true when you’re young, starting a family, paying off those school debts and dealing with a mortgage. Your income will go up and hopefully you’ll work on developing your money management skills and habits, including paying yourself first for your future dreams and goals. You also may not need as much money as what you traditionally hear.
Don't fall into the trap of thinking it'll be easier to save for retirement in just a few more years. After all, there are competing and expensive needs no matter how old you are. First you pay off your college and the next thing you know, you’re helping your kids pay off theirs. Then there is the house, the kids and grandkids, wedding expenses and home renovations. Where did the time go? Every year you delay means you'll need to save more in order to get on track for a retirement that’s getting closer and closer.
The best time to start saving for retirement is when you were young and started working. The second-best time is now. Let the power of compound interest work for you as long as possible.
© 2020 by Peter a Wouters. Republished with permission by Peter Wouters. For the complete list of articles, please visit here.
Related articles:
Ten retirement myths series: Myth #10
Ten retirement myths series: Myth #9
Ten retirement myths series: Myth #8
Ten retirement myths series: Myth #7
Ten retirement myths series: Myth #6
Ten retirement myths series: Myth #5
Ten retirement myths series: Myth #4
Ten retirement myths series: Myth #3
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January 2020
