Living With Less For Now To Have More Later

Most of us do not think too much about our retirement. When we are new into the workforce, retirement is one of the last things we are thinking about. Our lives are just beginning and there does not seem to be an end in sight. Typically by the time you are in your thirties, you begin to think about want to have an end to the endless work life. This is about the time retirement comes into the light. So why don’t more people do something substantial about it?

The Retirement Dilemma

More often then not, when I have worked with individuals to setup their budgets and understand their finances, I will ask about their retirement. This is when the sad truth comes out. I have seen people well into their late 50’s even early 60’s who have barely saved more than $200k for their retirement. They start asking me what they can do to allow them to retire. Unfortunately, I inevitably have to share with them the sad truth that there is not much to meet their retirement. The other side comes when I work with younger folks who would like to begin saving for their retirement, however they are unwilling/unable to set aside money. This is due to their current lifestyle and excessive debt they are currently dealing with. So, in most of the situations it is a catch-22. Either they want to and can’t, or they can and don’t have much more time left.

Why It Is So Important

So why is it important more than ever to begin to save for your retirement? Mainly because for many who are below the age of 40, there is a strong chance Social Security will not be available. So many today are banking on their ability to get Social Security benefits paid by the government. Unfortunately, most of what many are paying into today while working is paying the current SSI benefits for those already eligible. Thus, eventually it is at a diminishing return. Without this, we are on our own to save and plan for our retirement. There will be no help from any government (USA that is). Start working with an advisor ASAP and start planning for your retirement!