pre-retirement; retirement planning; retirement planning / retirement calculator

Don’t Delay Investing for Retirement!

It’s so easy to justify procrastinating retirement savings… once I pay off the mortgage, when I finish helping my kids pay for post-secondary education, when I get a raise…
“Most retirement calculators are optimistic to a fault. They assume our incomes will rise throughout our working lives, or at least stay roughly the same.
In reality, our incomes are likely to peak years — and sometimes decades — before we retire. Consider this:
— People’s biggest wage increases tend to happen in their 20s and 30s, with more modest increases in midlife followed by declines, according to a 2016 analysis of Social Security earnings records underwritten by the Federal Reserve Bank of New York.
— Most people’s incomes peak by age 45, the researchers found, although the top 20% of earners peaked in their 50s.
More than half of those who enter their 50s with a stable job are laid off or otherwise forced out the door, and the vast majority don’t recover financially, according to analysis by ProPublica and the Urban Institute.” Liz Weston writing for the AP News.
So… what to do:
Save early and avoid “lifestyle creep”
Remind yourself about the time value of money and compound interest which illustrate how much more valuable is a dollar invested a decade ago compared to a dollar invested today.
Get the details at: https://www.apnews.com/3ae0c46014564b82bbdd55f4d7facd4b
Source: Financial Planning for Women