Life can get in the way of even the best intentions when it comes to retirement planning. You graduate college or you go straight into your career and the bills start piling up. Next thing you know, you’re buying a car or a house, starting a family, renovating your home and buying life insurance. Then all of a sudden, you realize you aren’t 20 years old anymore, and you don’t have a retirement plan in place. What happened?
If retirement seems far out of reach, it may simply take the changing of a few habits to get you on the right track.
Break Your Bad Habits
- Procrastination. You might think you’re too young to worry about retirement now. But when you put off saving, you miss out on the benefits of time and tax-deferred growth. Even if you don’t have a lot to save, you can start small and increase the amount you save over time. If your retirement plan has an employer match, be sure to contribute enough to get the match.
- Living outside of your means. It’s easy to get caught up in a lifestyle where you’re buying things to keep up with everyone else — from clothes and furniture to vacations and vehicles. It’s good to enjoy what you’ve earned, but not if you’re jeopardizing your ability to retire comfortably in the future. You might decide to live on a smaller budget now so you can save more for the future.
- Putting your savings last. When there are so many other priorities in life, it’s easy to skip saving for retirement. Instead, make saving a top priority. Set up automatic transfers from your paycheck so you don’t forget to save. If you get a raise, add that to the deposit so you can increase your savings without feeling the pinch.
- Believing it’s too late. As long as you’re working, it’s not too late for you to contribute to a retirement plan. Take advantage of your employer-sponsored retirement plan if offered, or open an IRA with PeoplesBank. If you’re age 50 or older, you may be eligible to make catch-up contributions to your retirement plan or IRA.
We can help you break these bad habits and build better ones. Contact one of our Financial Advisors to start planning for a brighter future today.
This financial institution does not give tax advice. Consult your tax advisor for information specific to your situation.