Happy National Retirement Security Week!
Congress has designated the third week in October as National Retirement Security Week. Let me ask you – How secure is your retirement? Could you use a checkup?
The National Association of Government Defined Contribution Administrators has put together a website filled with quick tips for getting started and maintaining your momentum in saving for retirement. Check out the NAGDCA website here, and watch their quick promo video below:
“Buying” Your Retirement?
Believe it or not, the most expensive thing you will ever buy in your life is your retirement. When you save for retirement, you are using today’s dollars to pay for your expenses when you retire. Buying retirement security today is also harder to do. We are living longer and our living expenses increase every year. At age 65, the average life expectancy is 17 years for a man and 20 years for a woman. My 30 year career will be complete when I’m 56, so I’ll need to buy at least 26 years of retirement.
Time Is On Your Side
If you are in the increasingly rare minority who has a traditional pension, you’re lucky. Hopefully your employer matches at least part of your retirement contribution, and you contribute enough to get that match. But if you haven’t yet started saving for retirement, it’s crucial that you start now. For every 10 years you delay before you start saving for retirement, you will need to save three times as much per month to catch up. The sooner you begin saving towards retirement security, the better. Like I’ve said before, use the power of compounding to help build your nest egg. If you’re young, time is on your side. If you’re not so young, you’ll have to work harder.
Resources for increasing your retirement security are everywhere. Check out a couple of my posts below to get you started: