Why Save for Retirement?
With the expenses you have today, putting aside some of your first paychecks for retirement may seem a little premature. But the sooner you start, the more you can save. More important, it will put you in a better position to make up for lost time if you have to cut back on retirement savings at some point because of major financial events, such as a down payment on a house, college expenses, or a period of unemployment.
Why You Need Retirement Savings
Your retirement savings will play an important role in shaping how you will live during your years to come. Consider this:
- People are living longer, so you need to have enough money to get you through what could easily be 20+ years of retirement
- Inflation can chip away at your buying power; this can have a significant impact when you're a retiree with a fixed income, possibly reducing your standard of living.
- Traditional sources of retirement income, such as pensions and Social Security, are no longer sure things, increasing the need to have your own savings.
- And let's not forget about healthcare costs. Recent studies estimate that a 65-year-old couple retiring in 2010 would need between $158,000 (for a 50% chance) and $271,000 (for a 90% chance) to cover out-of-pocket healthcare costs during retirement.*
By coming to this website, you've taken an important first step to plan for your retirement. So keep at it—whenever you have a few moments, look here for information, tools, and tips to help you reach your retirement goals.
* Paul Fronstin et al., Funding Savings Needed for Health Expenses for Persons Eligible for Medicare. Issue Brief no. 351. Employee Benefit Research Institute (December 2010). Estimates refer to savings needed for Medigap premiums, Medicare Part B premiums, Medicare Part D premiums, and out-of-pocket drug expenses.
