By Patricia Uceda, Spring 2015 Graduate Research Assistant
As college students and recent graduates, often the furthest thing from our minds is retirement. We’re worried about saving for homes and cars, not some distant event that seems ages away. However, now is really the time when we should be thinking about retirement. The sooner you start saving, the more time your money has to grow.
Unfortunately, as we discussed earlier this year, the SEC has found that American consumers are not all preparing for retirement as they should. This is alarming given that the average American spends 20 years in retirement. Below are a few troubling statistics from the Department of Labor:
- Fewer than half of Americans have calculated how much they need to save for retirement.
- In 2012, 30 percent of private industry workers with access to a defined contribution plan (such as a 401(k) plan) did not participate.
- In 2014, 34 percent of middle-class Americans were not making any contribution to a retirement vehicle such as a 401(k) or an IRA.
In order to help you make the first step towards saving for your retirement and ensuring that your future is secure, we will be sharing retirement saving tips all this month. Be sure to check back tomorrow for more information!