A recent study by CNN.com found that 60 percent of baby boomers are not able to fully retire due to money issues.
How upsetting would it be to work a full career only to find out that you don’t have enough saved to retire? Don’t let this happen to you! The younger you are when you begin to save, the more you have compounding interest. Even if you start by saving $10 per month, it is a step in the right direction.
Once you are in the habit of putting some money away each month – and as you can afford to – increase the amount you save every time your pay increases. Also, if you occasionally have a fluctuation in pay (due to overtime pay or more hours worked) – put more away.
Here is an example of how time is important. If you put $95 in savings every month starting when you are 20 years old, you will have one million dollars when you turn 65*. On the other hand, if you wait until you are 30 to begin saving, you would have to save $442 per month to reach the same goal*. Starting to save as early as possible will make a big difference. And remember, it is not too late to start saving. If you think you are past the age to save, it is even more important to start putting away now in order to reach your retirement goal. The time is now, so start saving right away!
*Assuming a 10% rate of return