Millennials running out of time saving for Retirement
Speros Financial
www.sperosfinancial.com 602-531-5141
They say time is money, and according to a new study, young
people may be running low on both when it comes to retirement planning.
We live in a "now" society, where many of us are
focused on what is right in front of us -- from technology to information and
even our meals.
Concentrating on things that are more immediate is leaving young people short in long-term savings.
One student told WMTW News 8 that he puts his money into a savings account.
"You will never retire if you put your money in a savings account," said Burt Smoluk, a finance professor and associate dean at the University of Southern Maine.
Smoluk said doing so could be a financial disaster.
"Saving for retirement, it may be 45 years away. It is light years beyond their reach of comprehension," said Smoluk.
"I think it's always something that you have to have in the back of your mind. But the loans you're accruing now are first and foremost, and something that you should address immediately," said a student by the name of "Katie."
Twenty-somethings are shying away from investments and are more focused on things like paying off debt, getting a job, buying a home and getting married before saving for retirement.
And, a majority think 27 is the age to start putting away their pennies.
"I've considered the IRA. I don't currently have one now, but that's something i'm looking forward to," said Katie.
But some said the sooner the better. A different savings strategy from earlier generations.
"Now, at a younger age, they're going to have to figure out, 'Hmm, do I need to invest in the stock market, or somewhere I need to invest so it builds over time and compounds into a decent nest egg,'" said Smoluk.
While they seem to be taking care of investments for themselves in their education and careers, Smoluk said young people should take a lesson in financial management.
He said the stocks are rebounding and taking advantage now will pay dividends in the future.
Concentrating on things that are more immediate is leaving young people short in long-term savings.
One student told WMTW News 8 that he puts his money into a savings account.
"You will never retire if you put your money in a savings account," said Burt Smoluk, a finance professor and associate dean at the University of Southern Maine.
Smoluk said doing so could be a financial disaster.
"Saving for retirement, it may be 45 years away. It is light years beyond their reach of comprehension," said Smoluk.
"I think it's always something that you have to have in the back of your mind. But the loans you're accruing now are first and foremost, and something that you should address immediately," said a student by the name of "Katie."
Twenty-somethings are shying away from investments and are more focused on things like paying off debt, getting a job, buying a home and getting married before saving for retirement.
And, a majority think 27 is the age to start putting away their pennies.
"I've considered the IRA. I don't currently have one now, but that's something i'm looking forward to," said Katie.
But some said the sooner the better. A different savings strategy from earlier generations.
"Now, at a younger age, they're going to have to figure out, 'Hmm, do I need to invest in the stock market, or somewhere I need to invest so it builds over time and compounds into a decent nest egg,'" said Smoluk.
While they seem to be taking care of investments for themselves in their education and careers, Smoluk said young people should take a lesson in financial management.
He said the stocks are rebounding and taking advantage now will pay dividends in the future.
