One of the greatest life regrets told by elderly people is that they wish they had saved more money when they were younger. According to a recent survey by the Employee Benefit Research Institute, 57% of U.S workers reported less than $25,000 in total household savings and investments, excluding equity in their homes. Further, the crisis of seniors without sufficient savings to retire is a growing challenge.
The old adage of, “Pay yourself first” is one that should be adapted by most workers. I typically advise my clients to budget their expenses to be able to allocate 10% of their gross income to be split between short and long term savings. If managed properly, this should provide sufficient savings to have a comfortable lifestyle at retirement. Also, remember that retirement is a number, not an age. Know what the amount needed to retire is and then make progress each month towards that goal.