3 Things Generation Y Needs to Consider About Retirement

May 21,2013

By Annie Cromwell, America Saves Communications Associate

A recent Gallup Poll named “not having enough money for retirement” as the top financial concern among Americans ages 18-65+. A number of employers are offering automatic retirement-savings in an attempt to lessen these fears and make savings automatic, often suggesting that new hires contribute 3% of their pay.

However, experts say that workers should contribute closer to 12%-15%, including both worker and employer contributions. But often that 3% employees contribute is not enough to receive an employer’s full 401(k) matching contribution.

Let’s say you are a young person, ages 18-34, and are having to consider and provide for all of your financial needs, possibly for the first time in your life, and contributing to a retirement savings plan seems too far off to even think about. But you know it is important…what should you do?

Consider These Things

Perhaps you think you have a lifetime before you’ll utilize your retirement funds, and that you’ll have almost as long to start saving; or maybe it’s too overwhelming a task and you’re unsure where to begin; or for some, you feel the amount you could contribute right now would be inconsequential, and better served financing your present needs. Remember, retirement is imminent and you need to save for it. With that in mind, it is also important to know that it is okay to start small, and if you free up some funds in your budget and make a plan you can look forward to a comfortable retirement too!

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