While I am far from retirement I have started planning for it from an early age. The one thing my dad always talked about as soon as I was old enough to get a job was to start saving early so I would have enough put away when I was ready to retire. Yes, at age 16 I was already well aware of retirement planning.
And I did what I’m sure other teens did not do. I listened to my dad. And at the age of 17, when I was eligible per my company’s regulations, I opened up a 401K. At first I simply put in a certain percentage, not quite sure what matching was and how it would benefit me.
Then my dad taught me the benefit of being aware of how company matching could do for my savings and I increased the percentage I was putting away each week. Lucky for me my husband also felt the same way about early retirement planning and had already started his 401K as well.
But I’m sure many aren’t lucky enough to have a dad like mine who pushed me to save at such an early age. So I’ve come across some great tips while researching ways to continue my retirement planning now that I’m a work-at-home mom.
Retirement Planning at an Early Age
1. Set up an automatic retirement savings plan –
Whether you contribute to a 401K through your work or set up a savings account on your own, start putting away a percentage of each paycheck starting now. The sooner you start saving – and investing – the sooner you’ll be able to retire.
2. Take advantage of employer contributions –
As I mentioned before, the company I worked with would match our 401K contributions up to a certain percentage. If your company offers this then you should definitely be taking advantage of this. Who can say no to free money? Usually there is a cap on what they’ll match to so make sure you know all of your company’s guidelines and regulations.
3. Leave your money where it is –
While it may be tempting to cash out on your 401K for that new car or a down payment on a house, you aren’t doing yourself any favors! Consider sitting down with a financial planner to plan out how to save for large purchases or investments without touching your savings. You’ll be thankful in the long run.
4. Sit down with a professional –
Still lost with all of this talk of savings? Consider sitting down with a professional and going over your finances. From there you can determine just how much you can be putting aside for retirement and how long you’ll continue to do so. There are so many great resources and apps out there for us to use. Take advantage of the knowledge at your fingertips!
Have you started planning for retirement?
With our financial planning laid out and a plan for retirement always in the works I feel a lot better about our future. I definitely don’t want to be working past 65 if I don’t have to. And if my husband and I are still lucky to have our health by then we want to be able to use that time to enjoy ourselves.
Planning to retire a little sooner than I am? Consider reading this article on 7 Tips for People Planning to Retire in 2013 to find out if you’re ready to retire sooner!
Disclaimer: Information for this post is sourced from Genworth Financial in partnership with the SheHeard Influencer Network. All opinions are my own.
I am older than most of you and I am freaked out about not having enough money for retirement and paying for my daughter college. If its anything people should learn from the 2008 financial crisis and Any financial planner will tell your retirement fund and rainy day fund takes precedence over a college fund
We try and save for retirement but whether it’ll be enough remains to be seen. It seems like there’s always something coming up and any extra we could put into retirement ends up going elsewhere.
Thankfully, Hubby worked as a Financial Advisor when we lived in San Diego so he knows all the ropes in regards to money.. We have a 401K and are on our way to retirement. I am so aware of what happens when people dig into their retirement funds early, as my parents had to do it for multiple reasons, and now they hardly have any for the future. It is scary to think about, for sure, but I am glad we are preparing ourselves early on! Thanks for a greatly informative post!
Thank God for wise parents that thought ahead. My Father in Law is that way and so too my Mother. Always saving away for that rainy day.
I’m horrible! I totally need to start it up! I always seem to have an excuse. New baby, new house, new job…etc. I need to stop making excuses and start DOING it! Thanks for the kick in the butt!
This freaks me out… often. Like you, I started planning at 16, but then when the economy got bad I dipped into that fund quite a bit. REALLY need to start something up again soon! I am turning 35 this year and want to retire ASAP! LOL
These are GREAT tips! My dad was in the financial industry so he stressed the importance of retirement planning early while we were growing up.
I have never done a thing for retirement, I’m 24 and don’t work (other then blogging). My husband has it a little more together.