This new generation of millennials has a very different view on life than the baby boomers that have come before them. In a world of instant gratification, it can be hard for millennials to slow down and look at long term goals. When it is so easy to hop online and buy exactly what you want and have it shipped to your home the next day, it isn’t very appealing to plan a goal that won’t be accomplished for five, ten, or even 20 years. Saving is very important at any age, especially for millennials. Here are 5 reasons every millennial should be saving for retirement.
1- Cost of Living
Our world is constantly becoming more interconnected, technologically advanced, and convenient. However, there is a price to pay for this type of convenience. Cost of living is continuing to rise on a regular basis each year. By the time a millennial reaches retirement, basic rent for a one bedroom apartment could be even double of what it is today. There is no better time than now to start investing in your future.
2- Greater Life Expectancy
While our parents may have only spent 15 or 20 years in retirement, recent studies have shown that millennials may be facing up to 40 years in retirement due to a life expectancy over 100. Planning for a 40-year retirement is no easy task. You must be able to put away money now in order to have enough once you plan on retiring in your sixties. If you wait until later in life, you will have to play a lot of catchup in order to have the money saved you need to truly have a comfortable retirement.
3- More Investment Opportunities
If you want to invest in our modern age, you now have access to investing tools on your laptop, smartphone, and tablet. There are many apps that will help you take your spare change and invest it toward your retirement. With so many amazing tools at your fingertips, there are very few excuses to not be investing. The financial educational tools available for free are countless. With a simple internet search, you will be able to learn more in one afternoon than someone in the 80s may have been able to learn in a whole week.
4- Social Security
If the way things are going continue, the Social Security program will most likely fail by 2036. Where the previous generations were able to reap the benefits of Social Security, it seems that Millennials will not have this option. This makes it more important than ever to start saving for retirement now. Without the right type of planning, Millennials will find that they have nowhere to turn in their old age except returning to employment.
5- Set Good Habits
According to Accounting Freedom, Ltd., disciplining yourself to invest is a great way to learn to set good habits. Taking care of your health is just like learning to save. If you are able to take a portion of your money and invest it each month, it will be easier to take a portion of your time and invest it in going to the gym or eating healthy. The more discipline you have over your spending, the more discipline you will have over your whole life. The sooner you start saving and investing, the easier it will be to create other good habits as well. Don’t wait until it is too late, start saving and creating the great habits you need in your life today.