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For many Americans, retirement is getting further out of reach, according to a recent study released by Gallup.
The survey, which polled 1,018 Americans, revealed that workers are retiring at a later age than they have in the last three decades. In 1991, the average age of retirement was 57, but it’s now up to 61. The target retirement for non retirees, or those planning to retire, went up to 66 from 60.
Some experts are attributing this to longer life expectancies, but record high inflation and volatility in the housing and stock markets are factors too.
“[The S&P 500] is currently in a bear market with high inflation. Meaning, people’s retirement accounts are worth less, and things cost more,” says Beau Henderson, a retirement specialist and CEO of Rich Life Advisors. “And with rising interest rates, borrowing to buy things such as a home or car costs more. Higher costs are making people wary that maybe they don’t have enough to retire, and they’re working longer,” says Henderson.
Planning for retirement should start as soon as investors are able to. Here’s how everyone can prepare for retirement, no matter their age or where they are in life. A little goes a long way.
How to Start Saving for Retirement Now
Planning for retirement doesn’t have to be daunting. Getting ahead of your finances, making a budget, and sticking to your investment plan can help tremendously. Every dollar you invest now will benefit you in the future. Fidelity recommends putting away 15% of your annual income towards retirement each year. Keep in mind your retirement goal will depend on many factors, like how long you anticipate working and your income, to name a couple things.
Here are some ways to start saving for retirement now:
Start investing now and make it a habit
American businessman and investor Warren Buffett said the best time to start investing was several years ago, and the second best time is today. In other words, the sooner you get started, the better. Don’t wait to jump into the stock market for fear of the unknown. The longer you have your money invested, the better chance compound interest can work in your favor, as your money will compound on itself over and over again.
For example, if you started investing $6,000 a year into your Roth …….