Retirement is a word that worries many, both young and old.
“Twenty-one percent of workers are now very confident they will have enough money to live comfortably throughout their retirement years,” according to the Employee Benefit Research Institute’s 2016 Retirement Confidence Survey.
However, personal finance expert Rachel Cruze, says it’s never too late to start to saving up.
“The older you are, the less time you have obviously,” she said. “But if you’re still breathing you still have time to save money. So you just get on that ball quicker.”
After retiring from work, some Americans are hesitant to spend money, fearing that their funds may dry up. Cruze explained why people who feel this way shouldn’t be overly concerned.
“It depends on what you have saved and everyone’s different. Everyone’s lifestyle limit is different; everyone’s income is different to do it,” she explained. “So your number’s going to look different. But if you’re at a place where you say ‘hey, I feel good, my math is working out, this is exactly what I want to do,’ compound interest is your friend, we’re looking ahead—this is what we think the market’s gonna do… Hopefully you get to that point in retirement where you can enjoy it, and enjoy it to the limit that you’re expecting.”
Cruze also shared retirement advice for millennials; she recommends people within this age group save 15% of their gross income annually.
“It seems difficult at times, but that’s where you have to make sacrifices,” she said. “And especially for the millennials that have student loan debt that so many do, you have to make sacrifices and you have to get out of that debt as quickly as possible, have that emergency fund in place.”
The personal finance expert added:
“Don’t depend on the government for your money. You have to take control of your life and say ‘hey, this is what I want to do.’ You’re in charge of your destiny, so don’t worry about what’s going on in the White House, worry about what’s going on in your house. You have to take control of your life.”