Planning for retirement isn’t an easy task. But did you know that not all workers are equally concerned about their retirement? One group of American workers is more fearful about depleting their retirement savings than the whole population. Do you want to know which Americans are most concerned about their retirement savings?
You must be thinking it would be those near retirement, but you’re mistaken. The most concerned about preparing for retirement are the younger people.
According to a survey from E-Trade (NASDAQ: ETFC), 51% of American workers under 34 years of age are more worried about their retirement savings. This is a comparatively higher percentage of people than the population. 32% of all respondents said that they are worried that they may not have enough savings for later years.
Most of the young workers aren’t severe about saving enough; it is their top-most worry above all others. The survey also cleared that young investors are more worried about their retirement preparation during the ongoing COVID-19 crisis.
All of us know that young workers are more scared of their future. This generation is more likely than their older one to list a high standard of housing, and education is a significant hindrance to retirement savings. 67% of young investors mentioned that their housing expenses were an obstacle to investing, compared with 44% of the population. Education is the second, with 64% of young investors listing this as the main reason for not saving for retirement.
Many people under 34 are worried about paying student loans and unmanageable housing prices. They are also dealing with a recession that could affect their job prospects and make things worse.
Young workers prefer early withdrawal from their retirement account more likely than members of other generations. Early withdrawals can play a negative role in their lives and affect their retirement readiness, as that money will help them build a secure future. Though COVID-19 relief legislation has suspended penalties on coronavirus-related withdrawals, usually taking money out of retirement accounts before age 59 1/2 can force workers to pay a 10% penalty.
What can you do to overcome your worries?
The best way to overcome your worries about your financial security in retirement is to create a savings goal and adheres to it.
You can easily calculate the amount that you may need by calculating ten times the salary you expect to get before taking retirement. Many online calculators are readily available these days to help you break that big goal down into small ones so that you get an idea of your monthly savings. You can extend an automated contribution to a 401(k) or IRA.
We understand that taking extra cash to reach these goals can be challenging, especially when the housing prices are appreciating or when the student loans are at an all-time high. But don’t worry, there are solutions like refinancing at today’s low rates, staying with roommates, or applying for income-driven repayment in case of student loans.
You may find it challenging to take some extra cash, but these steps can help you save for retirement worry-free. You will gain confidence that you are saving enough, and your automated contributions will continue, so you don’t miss any month. Your sacrifice will be worth it as you will start seeing your account balance increasing, and your worries about your future retirement will fade away.
Most retirees completely overlook the Social Security bonus of $16,728.
If you don’t fall under this particular group of Americans, you may be a few years behind on your retirement savings. However, some “Social Security secrets” can help increase your retirement income. For example, a straightforward trick may give you $16,728 more each year! It would help if you learned to maximize your Social Security benefits so that you can retire confidently and with peace of mind.