As younger generations look toward the future and their retirement years, they see them differently than their parents and grandparents. For their parents and grandparents, retirement was a time for relaxation after years of working. It was also a time to spend with their children and grandchildren without work getting in the way. However, younger generations look at retirement differently than their parents and grandparents did. They see these times as a new chapter in life.
While their parents and grandparents before them were hoping for peaceful retirement years filled with relaxation and family time, younger generations are seeing their retirement years as a time to do the things they have always wanted to do and travel to places they haven't had the opportunity to see. They want to see the world, hang out with their friends, and have new experiences.
Don't Forget About Healthcare
According to an Edward Jones and Age Wave report, nearly 70% of Americans want to live to the age of 100, and their ideal length for retirement is nearly 30 years. However, the younger generation is not considering that their older years may include physical or mental challenges. Usually, by the time one retires, they start having health concerns and could eventually have cognitive impairment. Retirees will be using a lot of their money towards healthcare expenses and need to be prepared if an unexpected health scare happens.
The Fear of Outliving Savings
While there is a fear of outliving their savings, younger generations are still not considering the amount they need to save to live sufficiently in their retirement years. Most are either not maximizing their retirement savings or not contributing to a retirement account. As a result, when it comes time to retire, most people will have wished they had started saving earlier than they did. Retirees, on average, began saving at age 38 but wished they had started at 28.
The fear of outliving their retirement funds is causing most Americans to want to continue working to some degree, whether it be part-time or cycling between work and leisure. However, they are not considering that after a certain point, working may not be an option due to their health.
With the desire to live longer, the younger generation must start saving early. Even if it's just a little money set aside at first, one can always increase the funds going into their retirement account as they age. Every little bit counts, so they need to start saving now so they don't regret not saving later on.
An IRA is a fantastic way to begin saving for the future. At ValuTeachers, we can help the younger generation start saving now. Let us help you with your retirement journey so you can fulfill all your dreams in the future.