For young adults in their 20s, retirement seems light years away. And for many, they aren’t in the financial position to sock away a good portion of their paycheck for something that doesn’t occur for at least three decades. Incomes are low, debts tend to be high.
But this young generation should take heed from the current baby boomer generation that, for the most part, has saved nowhere near the amount they need to retire. More than half of all workers report they have less than $25,000 in savings, according to a survey by the Employee Benefit Research Institute. This shortfall should serve as a reminder that planning for retirement should start early to build up an ample financial cushion along the way.