Contributing to Retirement: The Cost Of Waiting
UPDATE 3/12/2012 - Some interesting retirement statistics came out for 2012 which may make you change your view towards life insurance in the retirement years. Sue Thompson wrote an interesting article "Dire Retirement Stats Worth Discussing" on iSharesBlog about the importance of saving for retirement. According to the Employee Benefit Research Institute, about 30% of all Americans have less than $1000 saved for retirement. If this is you, take the time to get a plan in place and ensure your loved ones will have what they need to take care of your estate once you are gone.
Planning for your future by obtaining a quality life insurance policy is a great start to financial freedom. Knowing that your family will be taken care of if something happens to you is crucial for peace of mind. But are you prepared to take care of yourself if you are lucky enough to make it to your retirement years? So many people focus on life insurance and aren't taking the time to evaluate their retirement needs. Saving early will earn you substantially more for your retirement years so it's important to consider all of your options.
Hartford Life Insurance Companies talks about the cost of waiting when it comes to retirement saving on their website. They point out that when you decide to start saving for retirement can make a huge difference in your choices later in life. As an example from their webpage, if you start saving at age 25 instead of age 35, you could have almost double the money in your account when you retire. This statistic is huge and should be carefully considered by all young professionals. Waiting a decade to save for retirement could end up costing you hundreds of thousands of dollars.
Time is on your side and this is important to understand from the get go. The longer you wait to start saving for your future, the more you will need to contribute later to catch up your account. Having a plan for your future is just as important as having a life insurance plan. If you wait for either product you are taking a big risk. Meet with a financial expert to go over your individual circumstances and help you determine the best account for your needs at this time. You will be glad you did once retirement nears.