You Should Increase Your Pension Contributions, for Example Now
There is good news for Americans who are saving for retirement: according to a new survey by Bankrate.com, we are getting better and better at it . The percentage of people who increased their contributions in the past year has almost doubled since 2011, with 29% increasing their contributions. 46% of respondents said they save as much as they did last year.
In particular, the older millennial generation (30–38 years old) was the demographic that was most likely to increase its savings rate. “They paid off their student debt, or bought that first house, or they got a promotion that pays more and they think about the future” more than in previous years of their career, Greg McBride, said chief financial analyst at Bankrate. .com. The survey involved 2016 respondents.
You really need to “think a little” to adjust your contribution.
Here’s some not very encouraging news: 16% of people save less for retirement than last year. Many respondents named other financial goals, but 12% said they just “didn’t bother” to adjust their contributions. According to McBride, young millennials were the worst offenders among respondents to let the task sink to the bottom of their to-do lists.
He warned that young people lose the most by not keeping track of their contributions. “Because of the power of compounding, time is your greatest ally in saving for retirement,” McBride said. “And so there is a need to contribute sooner rather than later.”
Sustained progress wins in this marathon, and even if you can increase your contribution by 1% this year , it will benefit your financial health in the long run. “If you work and get paid, you want this money to continue automatically. put into your retirement account, ”McBride said.
But about this economic forecast? Things aren’t looking so optimistic right now , but that’s not a reason to start messing with your appropriations when you log in to check your contribution levels. “The biggest risk to retirement savings is nervousness due to market volatility and a change in the way retirement savings are invested,” McBride said. “Volatility can really work in your favor in the long run.”