A new survey has highlighted that the topmost worry of a lot of Americans is their ability to save for retirement benefits. Experts believe that the reason behind it is that people don’t have any idea on how much they need to save up. People are also unwilling to take many financial risks. The best bet is to save a lot and often for retirement from an early age.
The Biggest Stress is Retirement Benefits
The survey that reveals that saving for retirement benefits is the biggest stress for Americans was conducted by Charles Schwab. It states that retirement savings are a worry that surpasses other worries like student loans or credit card bills. The survey clearly mentions that the respondents that said this was a major worry which belonged to all age groups. About 4 out of 10 respondents said that building the retirement funds is their topmost worry.
Why Millennials are worried about Retirement than Student Loans
The Senior Vice President of Participant Services at Schwab, Catherine Golladay recently stated that it is interesting to see that retirement is a top source of financial stress for people of all ages, including Millennials who have other worries like credit card debts, student loans and prioritizing their daily living expenses.
She added that retirement savings are a stress for them because they have no idea on how much money they will need post-retirement while with student loans and credit card debts they know the exact numbers. This is a key cause of stress and uncertainty among Millennials with regard to retirement savings.
No Way Out
Another expert, a Professor of Financial Services at The American College of Financial Services, C.W. Copeland stated that Americans are stressed not only because the future expenses and earnings are unknowable but because the nature of investing is that one has to take risks to get ample rewards. He said that people don’t want to take many risks and there is no product that can offer reward without the risks.
Copeland said that people who are stressing over retirement benefits savings must focus on discipline and patience even if there is uncertainty. They should focus on saving early and saving often rather than seeking a simple and quick path to retirement. If a person makes some sacrifices now, he or she would be able to reap the rewards later in life.