Start Building Your Nest Egg Now
A common misconception among millennials is that they don’t have to save for retirement yet. But the reality is that if you expect to keep up your lifestyle when you retire, you need to start saving as soon as possible. People are expecting to be taken care of in the same way previous generations were, but the demographics have certainly changed over the years. With more and more baby boomers retiring, the number of people that need to benefit from social security relative to the number of laborers paying into the program will increase. In other words, we can no longer expect social security to cover the bulk of our expenses when we retire.
The Social Security administration guides folks to expect benefits from the program to replace approximately 40% of their working wages. Where will the other 60% come from? Your savings! If you do the math, 60% of your current wages, times the amount of time you’ll be in retirement is a lot of money to save, especially since the life expectancy rate in the US continues to climb. The earlier you start saving and investing, the better off you’ll be (thanks to compound interest!).
If you haven’t started saving for retirement, don’t worry, it’s never too late to start saving. Company programs like 401K’s and investment accounts like the ACU IRA account can help you start (or keep) building your nest egg. YourACU offers several options to get you started, all are federally insured and offer competitive dividends so that you can rest assured your future is safe. Contact one of our branches to determine which IRA account is right for you!