| Not saving more for retirement now may cost you tens of thousands later. Here's how to get started | | |  | WED, FEB 02, 2022 | | | | We have heard it before and we will hear it again: It's never too early or too late to start saving for retirement.
The consequences of not saving enough for retirement can play out in numerous ways and sadly it can often leave many people scrambling to just make ends meets in their old age. By making retirement savings a priority, however, you can ensure you won't outlive your money. You can also avoid moving into the basement of your daughter and son-in-law.
OK, to be fair sometimes not saving enough for retirement doesn't spell complete disaster, but it can kill those dreams. Just think of those friends who wanted to travel the world in retirement, but instead are forced to sit at home and watch every penny they spend.
Unfortunately, not having enough money for retirement will be a reality for far too many Americans. A Bankrate survey found that almost 36% of respondents have never had a retirement account. Additionally, not saving enough for retirement is the biggest financial regret for 19% of respondents, the survey found.
Experts say that regret is likely to catch up with many people because for every year you don't invest and allow your money to compound, you're costing yourself tens of thousands of dollars in the future.
Saving for retirement may seem like an impossible task for some people. But if you do find ways to save, you will be thanking yourself later. What kind of future awaits anyone who has failed to save for retirement? It's hard to say exactly what may happen to them financially, but some financial experts offered some educated guesses.
Those people will likely have to work into their mid- to late-70s. If their health permits, they will try to stay employed at least part time. Their earnings will presumably drop as they age. They will most likely have to rely heavily on Social Security and home equity. Social Security income alone may prove insufficient to retire on, so many will need to sell their home or arrange a reverse mortgage (if they own a home) to help fund their retirement.
They may rely on their children to support them in their golden years and they will need to accept a significantly lower quality of life.
So, when should you start planning to save for retirement?
One financial expert was very direct: "In a perfect world, we would all begin saving for retirement from the time we receive our first paycheck."
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