Do you ever feel like all of the work you have put in to your 401(k) and social security is for nothing? Even though many jobs offer benefits and retirement, there are several reasons that many people will never truly get to experience retirement for themselves. From rising life expectancy to falling economies, here are several road blocks people experience while striving towards retirement.
1) Not Starting Early
When saving for retirement, your absolute biggest asset is time. The later you start saving for retirement, the less interest you will accrue, which means the less money in your bank. For instance, if you begin to put $2,500 a year away in a Roth IRA, you will have $699,453 with an 8% interest return at age 62. Even if you start saving $5,000 a year at the age of 32, you will have about $80,000 less than the 22-year-old. Imagine if you begin to add more than that each year! $2,500 a year comes out to about $7 a day, so if you just take your lunch to work every day until you are 62, you are on your way to retirement with very little sacrifice. You could easily have plenty of money to retire by the time you are ready, and more than comfortably. Of course, many are way past that ripe young age of 22, but there is no time like the present to start saving!