4 reasons why it is important to save on retirement

It is important to save on retirement even if you are just starting out in the job market. Saving for retirement should be something you think of now, rather than dismissing it until you are older. Here are four reasons why you should start saving for retirement.

Prepare for the unexpected

Although you may think that saving later in life is a sufficient plan, you never know what the future holds. What if you become disabled? Social Security Disability has income restrictions that are not conducive to saving for retirement. What if you lose your job? Unemployment is not enough for most people to live off of, and what might not save for retirement. Anything can happen from now until retirement age, so having a retirement savings lead will help you stay on track if something goes wrong.

To have enough to last

Retirement begins in the 60s or 70s, but what if you live to be 100 years or older. Centenarians are becoming more and more common, so who knows how long people will live in 30 or 40 years. This means that you must have enough saved to live on for at least 30 to 40 years, if not more. You cannot rely solely on social security as you may not receive as much as you need. If you need $ 25,000 a year to live comfortably, you are looking at $ 1 million dollars over 40 years. You have a better chance of achieving this goal if you start saving at 25 instead of 40.

Using your benefits

If you now have a job contributing  start saving for retirement, take advantage of it. You may not always have this benefit, and even if you do, having an employer that matches your contributions will help you reach that $ 1 million goal. What is better than saving for retirement for 40 years? Having that amount doubled with the permission of your employer. If you have an employer that matches contributions and you do not make your own contributions, you are wasting this benefit.

Seize the opportunities

Over a person's lifetime, many investment opportunities will come and go. If you have not saved money to invest in these opportunities, you cannot take advantage of them. The more opportunities you take advantage of now, the more you can earn and save for retirement. By saving early, you can have the funds available to take advantage of these opportunities as they arise.

These are just four of the many reasons why it is important to save early for retirement. Start early now and get the money you need to enjoy your retirement later.