How and When to Save for Retirement

If you’re lucky enough to work and save extra cash during COVID-19, it might be a good time to start planning for retirement right now. But no matter how much COVID-19 has impacted your work or finances, here are some helpful tips to consider.

Save as Early as You Can

When you’re in your 20s, retirement seems so far away, it almost doesn’t seem real at all. In fact, this is one of the most common excuses people make to justify not saving for retirement.

Anyone approaching retirement age will tell you the years go by quickly and building a large nest egg becomes more difficult if you don’t start young. As you age, you may also acquire costs hefty costs such as a mortgage and a family.

The earlier you start planning for retirement, the better off you’ll be in the long run. It may be important to hire a financial advisor to help you out — especially if you do not have the know-how to manage your retirement process.

Match Contributions

If your employer is offering to match your retirement contribution, take it! A lot of people will get into the default retirement package provided by their company, which usually offers between 2% and 5%.

If your company matches, say, 5% of what you’re contributing, then you want to put in at least 5% of your paycheck toward retirement or you’re losing out on something pretty uncommon in life: free money!

What If You Don’t Have Enough?

If you need the money, hold tight on saving. If you’re struggling to pay for your required expenses, it’s understandable that you may not be in the best financial position to put money away in a retirement account.

This is particularly true right now, because we have people who are unemployed because of the coronavirus. But if you do have income left over in your budget, make sure that some of it goes to retirement. It doesn’t have to be all of it, but it should be something.

If you need help with planning for retirement. Don’t hesitate to contact RMLEFCU at 303 458 6660. We have the resources to help you reduce your stress about money and plan for a better retirement.