“While it would take a lot of hard work and diligent saving to achieve a retirement age of 56, it’s not entirely impossible,” said Lyndsay Clark, VP/Retail Manager. “A strict financial savings plan can help, and I would commend anyone for setting their goals so high.”
Steps to Achieve Early Retirement
While no financial savings plan can fully compensate for all the possibilities that life throws at you, having a comprehensive plan can make the journey toward retirement a little easier. Following are a few ideas to include in a plan.
Start saving early. At the very least, millennials will have to start saving as soon as they graduate from college and enter the professional world. The earlier they can start saving, the faster their savings will accumulate. By committing to putting a large portion of their paychecks into savings right away, millennials will be more likely to meet their retirement goals.
Make saving automatic. Contributions to savings should automatically be transferred to a savings or investment account. Saving automatically will also help millennials to grow accustomed to a lifestyle that includes a smaller take-home percentage of their paychecks.
Take advantage of employer match contributions. Millennials – and really all professionals – should contribute the maximum amount to their 401(k) plans to receive the full employer match. This is essentially free money that will dramatically increase their retirement savings.
Diversify your investments. While employer-sponsored 401(k) plans, Roth IRAs and traditional IRAs are great retirement savings vehicles, it may be wise to consider another type of investment plan as well.
Increasing contributions annually. One way to help speed up growth in retirement savings accounts is to contribute more. As millennials’ income increases – through cost-of-living wage increases, raises or higher-paying jobs – they should also increase their retirement and investment contributions.
While the steps described above will not guarantee that millennials will save enough to retire at age 56, they can help ensure that their retirement savings are in better shape at whatever age they decide to retire.
Want to Learn More?
Contact your retail advisor at 1-800-272-0159 to learn more about saving for retirement.
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