A study finds young workers are putting off saving for retirement
The economy has been tough on young people, and it’s starting to show up in how they view their future. According to a new report, almost half of young workers are holding off on investing for retirement until the economy settles down. That’s obviously a troubling strategy.
The survey of workers between 18 and 35 years old found that 45 percent were pausing retirement investments until the stock market “returned to normal.” The study didn’t specify what “normal” was, but these results are discouraging. The trouble with waiting for “normal” is that you might be waiting for quite a long time. And every day, month and year you wait to invest for your golden years will make your post-work life that much harder.
Despite what is happening with the stock market right now, there is no doubt that investing for your retirement is the right move. Over the long run, nothing will make you more money than staying invested. As USA Today points out, if you’re 25 right now, and have a goal to save $1 million by the time you’re 65, you’d need to save about $403 per month. That’s only if you’re invested and earning the annual average of about seven percent. Now let’s say you waited until you were 30 to start saving — you’d have to save about $582 per month to hit that same million mark.
The stock market is your best friend when it comes to retirement savings. Yes, you might lose some money in the short term, but you need to stick with it. Over the long haul, you’ll reap the rewards.