Saving For Retirement Invalid Reasons to Avoid Doing It

SavingsWhen it comes to saving for your future, the process may seem overwhelming. After all, in these tough economic times, it’s easy to feel pressure from student loans, mortgage rates, banking fees, creditors, insurance and other expenses. Planning your retirement may seem like the last thing you need to prioritize.

Millennial face the brunt of the retirement woes. According to Forbes, only 29% of millennial in a recent survey said that they used a retirement calculator to see how much income they would need for a healthy retirement, and only 17% said that they were currently on track to meet their retirement goals. In a post recession economy, experts say that now more than ever should young people start planning and saving for retirement.

With that said, many people under thirty still tend to rationalize why they aren’t prioritizing for their future. Here are five of the biggest excuses and justifications people tend to make whenever the topic of “retirement planning” comes up in conversation.

I Don’t Have Enough Income

This is bar none, one of the biggest excuses people like to make and its one of the easiest to dismiss. No matter how small your monthly income is, there are always ways to start budgeting for your future. Even many minimum wage jobs offer some sort of 401(k) retirement plan.

Start small and don’t try to save too much too fast. The younger you are, the less your monthly savings goals should be. As you get older and your income increases, gradually raise your amount taken off every paycheck.

I Don’t Know Where to Begin

This is another excuse that young people tend to make when it comes to saving for retirement. There are a plethora of ways for those in their twenties or thirties to start a retirement savings plan immediately. In addition to withholding partial sums from payroll checks, it’s beneficial to look into Roth IRAs or annuity programs.

Check out annuity assist to find out if annuities are right for you. These financial products allow you to pay your insurance company with either a lump sum or in small chunks. Over time, you’ll see that money return in disbursements while accruing interest. This option is perfect for young people who want to start saving responsibly right away.

I Will Rely on Social Security

Despite what you may think you know about American Social Security, it’s unwise to put all your eggs in one basket. The Social Security Administration was even quoted as saying “don’t count on it” when it comes to relying solely on it for retirement planning. According to an article on, a 2010 report from the Social Security and Medicare Board of Trustees states that SS funds may be depleted by 2036.

Experts expect young people will get at least 75% of their Social Security benefits – an estimated credit of $1,269 a month. While Social Security benefits are certainly an asset for retirement planning, it should be used to complement what Americans have after a lifetime of other savings and investments.

I Have Plenty of Time

Most finance experts agree that the earlier you save, the better off you’ll be after retirement. It’s a simple logic really. However, those in their twenties may not realize the importance of saving for a future that’s decades away. The thing most young people seem to forget is that a large portion of money accrued for retirement does not come from what is put into it. A good amount of that nest egg is accrued from decades of gradual interest and wise investments.

For example, a person who invests $15,000 a year for 30 years results in a sum of $450,000 saved. However, thanks to compounding interest, that same total could result in a figure of a couple million dollars. This interest takes years to accumulate though, and those who start earlier will reap the rewards and could earn several thousand if not millions more than those who wait to begin saving and investing.

I Don’t Have Enough Time

While it’s true that many people wait too long to begin saving for retirement, on the flip side, some people may feel that they’ve missed their window of opportunity to get started. While there will have to be some sacrifices made and possibly an extension of your working career, retirement “late bloomers” still have a shot of having a nice savings set aside for their golden years.

Remember, anything you can scrimp and save and set aside will pay dividends if you took the right steps to invest wisely.

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