Retirement planning: Start saving now

When should people start saving for retirement?

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Monetary policies meant to stimulate the economy may be hurting retirees on a fixed income. And the current economic environment is forcing some to put a hold on retirement altogether. Boomers nearing retirement age might not be able to hang up their hats just yet. As life spans increase and interest rates stay low, more people are finding themselves working longer.

We asked Ross LaRoe, associate professor of economics at Denison University, to comment on retirement in the near future. LaRoe teaches microeconomics, public finance and the history of economic thought. He also conducts seminars on contemporary economic issues.

When should people start saving for retirement?

Although the economy is still showing unsteady legs, an individual can plan for retirement. Whether you can contribute money to a savings account now or create a plan for when you can start contributing, any step toward a future retirement goal is better than doing nothing.

When determining the total amount needed to retire, professor LaRoe suggests using a financial planner. If you do not have one, start searching for one immediately. The sooner you start planning for retirement, the more you can begin making your future retirement plans.

If you can’t afford a financial planner, there are many ways to stash away even $50 per month to get you into the routine of compiling your nest egg. Automatic payday bank transfers into an account earmarked for retirement is one technique individuals use. This can help ensure you begin your journey to a stable, long-term retirement.

Some individuals use investment plans and put their money into 401(k) accounts or individual retirement accounts while others are still not able to do so. The first step can be the hardest, but don’t give up.

We would like to thank Ross LaRoe, associate professor of economics at Denison University, for his insight.

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