4 excuses for Gen Y to stall saving for retirement
When you're in your 20s, just starting your career, probably one of the last things on your mind is preparing for your financial security when your working days are over.
But if your employer offers a retirement plan with matching contributions, that's a deal you want to grab as soon as possible. Besides, if you start saving now, you can start small, with plenty of time to amass a large nest egg by the time you're ready to retire.
"If you wait until you're in your 30s or 40s or 50s, you're now talking about putting a lot of money away," says Jean Harris, a life coach in San Diego who conducts workshops on financial literacy.
Research indicates that younger workers are less likely to have a retirement account than before. According to the Employee Benefit Research Institute's 2013 Retirement Confidence survey, 56 percent of workers ages 25 to 34 said they have saved for retirement, versus 65 percent in that age group who said the same 10 years earlier.
Here are four of the top reasons 20-somethings give for neglecting their retirement nest egg, and rebuttals from advisers who provide them with reasons to save money for retirement now.