When you’re young and just starting off your life, family, and career, it’s not uncommon to have things like retirement or elder care be completely off your radar. However, the longer you wait to figure things out like this, the harder it will be for you to be totally prepared when the time comes to start making decisions about these things.
So to help you be as ready for your future as possible, here are three tips for saving for retirement and beyond while you’re still young.
Think Into The Future For Your Goals
Although you might not have a detailed idea of what you want your future to hold as you near retirement and beyond, Ben Geier, a contributor to Smart Assets, shares that by doing an honest assessment about what you want your retirement to look like, you can better know what you need to start doing now in order to reach those goals.
For example, if you want to be able to retire early and get some traveling in while your body is still feeling good, you’re likely going to need to be much more aggressive about saving and investing while you’re young. This can mean forgoing some fun now for fun that will be able to have in the future. But without thinking about your future now, you won’t have this option available for yourself.
Financially Prepare For Health Issues
As you get older, your body is likely to need more and more medical attention. So to ensure that you’ll have the funds you need to meet your needs, it’s wise to start financially preparing now for future health issues.
To do this, Tiffany Lam-Balfour, a contributor to NerdWallet.com, suggests looking into long-term care policies or using a health savings account. Both of these options will help you to have money available to you for your health care needs even when you’re not bringing in a steady income anymore.
Aim For Investing 15 Percent Into A Retirement Account
When you’re young and have less financial burdens with a growing family and other responsibilities, DaveRamsey.com shares that one of the best ways to prepare for retirement and your future is to start investing in a retirement account now.
Ideally, you should aim to save 15 percent of your gross income in a retirement account that will grow over the years. But if you can’t get to this amount right now, try to at least contribute enough to meet any employer match that’s available to you in a 401(k), as this is free money that you’ll be able to use in the future.
If you’re young and are starting to think about how you’ll be financially once you reach retirement age, consider using the tips mentioned above to help you begin preparing for this now.