If you are a millennial, saving for your retirement can be really hard! But, it is possible if you try hard enough! Secure your future with these tips!
A recent article on the Canadian CNBC website claims that millennials are not prepared for retirement. Those aged between 18 and 34 are mostly educated, tech-savvy and community-conscious. But bad timing makes it harder for them to save.
So what are the issues facing millennials?
Lack of Affordable Housing
Across all western economies, there is a chronic lack of affordable housing. In America every single county is staring down an affordable housing crisis, in the UK young people are priced out of two-thirds of the market and in France, due to the high number of those entering the country, there isn’t enough supply to meet demand.
The failure of Governments and local councils to plan for the future is costing millennials theirs. A vicious circle of forced renting has emerged: High house prices make buying a house impossible, as such, renting is the only ‘affordable’ option. But by renting there is no spare cash to put towards a mortgage or deposit and so the cycle continues.
According to research by www.openpropertygroup.com, the only way many young people break this cycle is by making a withdrawal from the bank of Mum and Dad.
What Can Young People Do to Prepare for Retirement?
Get out of Debt
The first thing to do is get out of debt. Citizen’s Advice is a great source of useful information on the subject of debt management. As it says on the website, debt won’t go away. With this in mind, it’s better to sort out debt sooner, rather than later.
The next thing you should do is start saving right away; even it’s only a very small amount. There is information out there to tell you how much you need to save for retirement. But for many on low incomes, such figures are unrealistic. So start by saving as much as you can, and put money into your savings on a regular basis.
Not buying your favourite Latte every morning and preparing meals from home are great ways to start.
Invest Money Wisely
Get the best out of the money you put away by choosing the right savings account. For tax-free savings, a high-interest ISA account is probably your best option.
Of course, you should also take steps to make your money go further. This means working out how much you’re spending and comparing it with how much you earn. You can then set limits on the amount going out; just be realistic and it will be easier to stick to your plan.
Push for those higher paying jobs, work weekends and get qualifications that will enable you to earn more. Earn as much as you can while you are young, save it and enjoy a long and healthy stress free retirement.
Are you a millennial? What steps have you taken to save for your retirement?