Reasons to save money for retirement

Retirement » Reasons To Save Money For Retirement

4 excuses for Gen Y to stall saving for retirement
4 excuses for Gen Y to stall saving for retirement? © wavebreakmedia/

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.

Achieving retirement success Whether your retirement plans involve a part-time job or full-time leisure, be sure to think through the details to ensure your dreams come true.


Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
30 year fixed 4.20%  0.07 4.27%
15 year fixed 3.27%  0.06 3.21%
5/1 ARM 3.53%  0.15 3.38%
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.29% --0.00 4.29%
50K FICO-based HELOC 4.04% --0.00 4.04%
100K FICO-based HELOC 3.89% --0.00 3.89%
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.79% --0.00 2.79%
48 month used car loan 2.98% --0.00 2.98%
60 month new car loan 3.24% --0.00 3.24%
View Rates in your area Next
Product Rate Change Last week
1 Year CD 0.95%  0.04 0.91%
2 Year CD 1.15%  0.02 1.13%
5 Year CD 1.75%  0.01 1.74%
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.77%  0.01 15.78%
Cash Back Cards 16.48% --0.00 16.48%
Low Interest Cards 10.96% --0.00 10.96%

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.


Jennie Phipps

Bogle says make 401(k)s better

Vanguard founder John Bogle told Congress this week that 401(k)s need to improve if they are to be our main source of retirement savings.  ... Read more

Partner Center

Connect with us