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.
A survey of workers 18 to 35 years old found 45% 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 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’s happening with the stock market right now, there’s no doubt 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 the 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.