Why on earth should you save for retirement? Read what OnSugar blog Beauty and the Budget has to say about saving for your golden years.
For a young woman in her mid twenties, saving for retirement can seem like a distant, abstract concept. Personally, I tend to save for short term rewards, like a summer vacation. But for those things that are far off — even further away than marriage and children — I avoid the subject and neglect the planning. When I look at other financial websites, my eyes usually fall upon some topic on retirement savings, but I never really look into it.
Somehow, the other day at work, I got to thinking about my retirement. I love working in fashion, but let's face it, this isn't the greatest industry if you want a high paying salary or benefits. Only those on the top of the fashion pyramid make lots of money. As for the rest of us, we just really have to love what we do. I used to think that every job came with some sort of retirement plan, and that you'd just automatically be taken care of by the last company you work for when you decide to retire. Unfortunately, that's not the way it works.
Read on for reasons to save for retirement.
Why Save for Retirement?
Right now, Social Security makes up for 40 percent of your pre-retirement income. So if you make $35,000 a year, during retirement, you'll only make $14,000. That's definitely not enough to live comfortably, especially if you dream of a retirement full of frequent trips to Florida or the Hamptons. Even if you want to stay at home eating apple pie and working on crossword puzzles all day (that would be me), making it by with under $20,000 will still be hard. To put it quite plainly, you can't depend on Uncle Sam like I thought. It's up to you to support yourself when you retire.
When Do I Start Saving for Retirement?
The best time to begin is . . . NOW! Whether you're 16 or 30, you've got to start somewhere! Even though I'd much rather be saving up for a pair of Jimmy Choos, chances are, 50 years from now when I retire, I'll probably want another pair. And if I don't start saving for retirement now, I won't be able to afford the little luxuries that I often crave.
Stay tuned as I spend the rest of this week discussing how you should prepare for retirement. (And I promise, it won't be boring!)