While retirement has always been treated as a time to “hang up your boots and do what you like”, modern retirees are taking this more seriously. Young professionals planning their retirement nest egg want to enjoy a comfortable and secure future, where they can do what they like without worrying about money.
However, they face some key challenges along the way. For instance, they are usually saddled with heavy student debt, as well as fluctuating incomes and a tax disadvantage if they’re single and childless. If they decide to start a family, they may get some tax benefits, but wedding, childcare, education, housing and other expenses add to their debt.
How Can You Start Saving for Retirement?
If you’re facing any of the challenges we discussed above, here are 10 retirement planning tips that will help you save for the future:
1. Open an IRA Now:
If you’ve started earning, whether through a business or a job, start saving in an IRA. Not only do you get tax benefits when you start contributing to these accounts, but also more time for your money to grow.
2. Understand IRA Types:
Different IRAs give you different benefits, so open one that matches your needs. The most popular options are traditional and Roth IRAs, but consider a SIMPLE or SEP-IRA if you’re self-employed or a business owner.