Although there is no definitive age when saving for retirement is appropriate, you really can never start too early if you’ve done your homework about retirement planning in Charleston, SC. Retiring might be decades away or just a year or so ahead, but the key is to make sure that you are putting enough aside to live (at a minimum) comfortably while you enjoy being employment-free. At AdvantEdge HR, we believe that if you invest wisely and make smart choices, not only will you have “enough” – you will have all that you need to really enjoy your golden years! These are just some of the reasons to start saving today!
Never Rely on the Status Quo
Social Security has been around for decades, but it wasn’t originally designed to take on the burden of someone’s entire retirement expenses. Social Security will only account for about 40% of your total salary once you retire. Statistics tell us that the average person needs closer to 70%. It is never a good idea to put all of your eggs in the basket of insecurity when it comes to government programs. Social Security – if it is there when you retire – will not be enough for you to live comfortably or enjoy your retirement. By saving up now, you can travel, go through your bucket list, and make the most of your non-working time!
Don’t Take a Chance on Burdening Those Who Depend on You
The last thing that most parents want is to rely on their children as they get older. If you want to make sure that you never put the financial burden on your children to pay for you after retirement, then saving early is a good safety net. By saving early, you can ensure that you will never be dependent on your dependents!
Maximizing Tax Benefits and Breaks
The government encourages those who save for themselves by providing tax benefits and breaks for retirement funds. Taking advantage of tax-deferred retirement opportunities is a way to accumulate savings much more quickly and not have to give most of it away when you do need to use it. Some tax incentives will offset your income while investing, avoid taxes on the money that you do accrue, and some even match contribution to contribution. Things like 401(k)s are a great way to let others help you chip in for your future.
Don’t Miss the Compounding Effect
Compounding interest means that the more you invest, the more you make. If you wait until you are in your 50s to start your retirement savings, there aren’t that many years for your retirement funds to accumulate. If you start in your 20s, however, you can invest a whole lot less, which means less sacrifice, and allow the money that you contribute to be like an avalanche over the years. Most people don’t even notice the money they save because it is taken right off the top of their paycheck before they even see it.
If you are looking to put some money aside in the new year, retirement planning in Charleston, SC is an excellent way to save for your future. Sure, you might have decades to go before you can quit and live it up, but if you start now, your living-it-up will be much more enjoyable! AdvantEdge HR has many different retirement planning strategies and options, and now is the time to get started! Contact us today and let’s discuss how you want to spend your golden years and make them that much more golden by planning!