National Save for Retirement Week is coming up (October 18-24) to urge Americans to beef up their savings accounts for the long haul. Those who have the longest amount of time before retiring stand to gain the most by investing early (thanks to the wonders of compounding interest), so it’s particularly important that young people start socking away money as soon as possible.
In honor of the upcoming awareness campaign, here’s a roundup of posts Econ4U has previously published on the subject of retirement savings:
- Forbes.com recently wrote about the costly financial mistakes that young people most often make, typically through sheer laziness. No. 2 on the list? “Not Opening A Retirement Fund (As Soon As Possible).”
- A report by USA Today found that the U.S. government cannot make good on its obligations to future retirees without raising taxes or reneging on promises. Meaning: If you’re relying on Social Security or a government-backed pension, you need a Plan B.
- Investors shaken by last year’s stocks free fall stand to earn much smaller returns on their money (and consequently, a lower standard of living in retirement) if they invest too conservatively now that the market is showing signs of recovery, says The New York Times.
- Confused by the relative benefits of stocks versus bonds? Online financial resource Morningstar.com’s Investing Classroom will teach you the basics (for free!).
- Wells Fargo operates a “retirement boot camp” for people who are close to retiring but aren’t sure what giving up their day jobs will mean for their standard of living. Many participants end up delaying retirement to give themselves a chance to save more.
