How Millennials Should Prepare for Retirement
Millennials are now approaching their 40s, a time when you should begin seriously considering and reviewing your post-retirement plans. Even at this young age – though it may seem early – you can begin to prepare yourself for a financially secure future with relatively little effort. Setting up a secure retirement savings plan is not as complex as it may seem. Below are a few ways you can get an early start at preparing for retirement as provided by the retirement savings plan experts at Ubiquity.
Be Selective in Employers
This is a tricky one to accomplish, especially in consideration of the volatility of the job market and the unrealistic hiring qualifications many employers have in place. Still, this is an element that is within your control. When you are ready to step into a permanent career, look for an establishment that values their employees highly. Specifically, look for this employee valuation in how it is expressed in the available benefits. Does this employer offer benefits that will be helpful to not only your current financial circumstances but your future as well?
Develop a Strategy for Paying Down Student Debt
The last thing you want is to enter your post-retirement life with heaps of student debt. Though your lifestyle and employment status may have changed, your loans will remain intact and your lender will expect the same frequency of payments. To help yourself out during retirement, you need to develop an effective strategy at paying these debts down before you reach that point. A few things you can do:
- Pay off high-interest loans first
- Be wary of refinancing options
- Remember that your student loans are tax-deductible (this will come in handy during the tax-filing season!)
Contribute to a Savings Account
You don’t want to end up in a situation where you have to take on more debt, or worse, stop contributing to (or withdraw from) your 401K. Remember that a large part of preparing for your financial future is ensuring that your funds are stable and secure here in the present. In case any emergencies were to arise, you should always have substantial savings in place to fall back on. Putting 10-20% of your monthly income into a secure account will give you that cushion you need if ever you lost your job or another unexpected life event were to occur.
Learn to Maximize Your Retirement Savings
Accounts like IRAs (individual retirement accounts) and 401Ks are great for maximizing savings due to their tax status (all funds contributing to your 401K are pre-tax, giving greater value to your installments). Employer-sponsored plans are even better for this aspect since the company will match what you’re putting into your account up to an average of 3.5%. Take advantage of these benefits to bolster your funds for the future.
Once you have integrated these steps into your early start on retirement savings, you’ll be well on your way to a financially secure future. Still, you may find some difficulty in knowing how to begin or remaining consistent, and that’s where a reputable retirement plan provider can help. To ensure you’re preparing for retirement as efficiently as possible, contact a provider today. They’ll help you to determine the perfect monthly contribution and give you the financial wellness tools you need to thrive in your current and post-retirement life.