Why Saving for Retirement Should Be Just as Important as Saving for College

 

How much do you presently have saved for retirement? If you’re like most adults in the US, the answer isn’t very much. There are a lot of reasons that people put off planning their retirement. Some, feel that saving towards something that’s decades away is pointless. Others have greater responsibilities like raising children and feel their money is best to invest in their children and their futures. Though all understandable reasons to put off saving, the truth is that saving for your retirement should be equally as important as saving for college tuition. Here’s why:

 

It’s Expensive

Like sending your children off to a four-year Ivy league school, retirement is expensive. You no longer have your paycheck to fall back on. Yet, you’ll still be required to pay for housing, utilities, vehicles, debt, food, entertainment, travel, medical expenses, etc. If you wait until your children are grown to start saving for retirement, you lose a lot of valuable years in which you could have saved thousands of dollars towards your future.

 

It’s Their Future Too

Most parents don’t think of this until they’re in the midst of trouble asking their children for help, but saving for your future is saving for their future as well. Adults who diligently save for retirement from the moment they obtain a job or have children are preparing their families for a better future. However, those who don’t are putting a great burden on their children.

 

Your Kids End Up in Debt

If you don’t save for college, your children end up having to pay out of pocket for their education or borrow the money. As most don’t have thousands of dollars ready to give up, this usually means they’ll need a student loan or two to cover the costs. Once they graduate, it can take them years to pay it all back. The same is true when saving for retirement. When you don’t properly plan and save towards life after work, you’ll need someone to help you out. This generally becomes the responsibility of your children. They will have to find the financial means to make sure both they and you can survive which is a huge debt.

 

How to Start Preparing

No parent wants to be a burden on their children. In fact, most hope their children will go on to lead prosperous lives. So, just as you have made saving for college a priority, you need to do the same with retirement saving. Below are some tips on how to prepare.

Work with an advisor – A financial advisor can help you to see the bigger picture. They can review your finances now and help you to determine how much you’ll need to retire happy. Then, the advisor will work with your current budget to find areas you can use to boost your savings. You can simply search Irvine retirement planning or look for a financial management company who specializes in retirement planning near where you live.

Pay down debts – You may feel as if you don’t have enough money to put away for your future, but you do. The problem is, it’s all tied up in paying back debt. Start working with your creditors to find feasible solutions that will allow you to pay off your debt. Make a debt management plan that may include solutions like minimum payments, reduced interest rates, and even negotiating settlement amounts to get the debt paid off faster. Then you can use the excess funds to put in savings.

Open a retirement account – if you don’t have one already, open a retirement savings account to begin depositing your cash into. Check with your employer to see if they have one as they often come with advantages like employer match options in which your job will match your weekly deposits.

If you’ve put retirement planning and saving on the back burner because you felt like taking care of the here and now or preparing your kids for college was more important, you may want to reconsider. As a parent when you effectively prepare and save money for everything from household emergencies and vacations to a college education and retirement, you’re doing a great deal to better the future of your entire family.

 

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