Why I’m Not Worried About Saving for Retirement
It’s become increasingly difficult for people to save for retirement. Here’s what I’m doing instead.
Every person has been told how important it is to save for retirement.
Financial advisors say the earlier you start, the better off you’ll be. Compounding interest builds over time and when you have a head start, you’ll be able to re-invest and save more money in the long run.
My parents, who are Baby Boomers, are looking forward to retiring soon in a few years. They’ll be able to access their 401k account, receive Social Security, and live off their savings. They’ve spent their entire lives, working hard and spending frugally, to get to this point. To enjoy themselves. And I’m happy for them!
Unfortunately (or cynically), I don’t believe that I, like many other Millennials and Gen-Z, will be able to replicate their exact formula for retirement. Are you in the same situation too?
Saving for retirement.
The question of how much one should save for retirement depends on a few factors:
- Where will the person retire to estimate the cost of living?
- What kind of lifestyle does the person want in retirement?
