Start Saving for Retirement at Your First Job
Why wait when starting early gives you an advantage?
As young adults enter the workforce, it is important that saving for retirement at your first job is a priority. This is because recent studies show workers and current retirees share the retirement regret of not saving sooner.
Depending on your unique financial situation, student loans may seem like the momentous task at hand. In fact, more than two-thirds of college graduates graduated with debt, and their average debt was about $35,000. Due to debt, some young adults may think holding off on saving for retirement is even wise for the time being. (1)
No matter your unique financial situation, even setting aside a small amount for retirement now matters. Contributing a small amount early on makes a difference because of compounding interest. Meaning, what you put in now will continue to grow over time.
Get a head start on securing your financial future and ask your employer about an employer-sponsored 401(k). Not participating is like giving up free money. This is because the biggest retirement saving advantage of an employer-sponsored 401(k) can be matching contributions.
Many employers will opt to match a portion of your savings. If you are able to max out your retirement contribution, your employer will match it. Again, everyone has a unique financial situation, but do what you can to get the maximum match.
Start saving for retirement at your first job. If you end up changing careers down the road, you have the option to rollover your 401(k).
1 – http://time.com/money/4168510/why-student-loan-crisis-is-worse-than-people-think/