How Millennials Can Start Saving for Retirement in Their 30’s
September 7, 2021
September 7, 2021: How much should you be saving for retirement in your 30s? If you’re a millennial who still hasn’t started putting away money for a future nest egg, you might find yourself asking that essential question. Although making Retirement Plans at an early age and putting away as much money as is feasible from the start of one’s career is a key component of being able to retire on time and in comfort, many millennials find themselves in their 30s without a plan or adequate savings. Thankfully, retirement planning for millennials doesn’t have to be excessively complicated. Here’s what you can do to begin putting away more retirement cash today.
Think About Your Desired Retirement Lifestyle and Associated Costs
One major factor you’ll need to think about before laying out your retirement plan is what you want your retirement lifestyle to look like. Although you may be able to research average retirement costs, how much money you’ll actually need to put away can vary widely and may come down to:
- Where you may wish to retire
- Whether you’ll have a paid-off home to live in when you retire
- How much you plan to travel or what you plan to purchase during your retirement
- What your current yearly expenses are and what you expect your total yearly expenses to be during retirement
Adopt a Slow Yet Strategic Savings Plan To Build Your Nest Egg
When it comes to building your nest egg, slow and steady wins the race. Try adopting a strategic plan to ensure you save responsibly. To do this, you should:
- Calculate how much you can afford to put into retirement funds per month or per year
- Diversify your retirement savings into different account types and investment types to lower the overall amount of risk you take on and ensure your savings grow over time
- Automate your retirement savings to be taken directly out of your bank account or directly out of your paycheck each month
Balance Everyday Expenses and Debt Payments With Retirement Savings
Lastly, make sure you’re not spending too much on everyday expenses and leaving too little for retirement. To avoid this conundrum, try to:
- Commit to putting away a certain minimum amount towards retirement every month, regardless of your other expenses
- Pay down your current debt balances as soon as possible so you have more free cash to put towards your retirement
- Avoid making unnecessary purchases, stick to a tight budget and put any leftover money at the end of the month into one or more of your retirement accounts
For many millennials in their 30s, making detailed Retirement Plans may not yet seem like a necessity. However, the sooner you begin saving money for your retirement, the quicker you may be able to retire in comfort and financial security. If you haven’t yet begun your retirement nest egg, work through these easy steps to get started as soon as you can.
About 1891 Financial Life
At 1891 Financial Life, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our new MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.