Most of us are still at that stage where any in-flow to our bank account can be a big deal, but often we have to turn right around and use that money for something else. At this point, saving for retirement isn’t even on most of our radars, heck, we haven’t even started working yet!
Several issues plague specifically women when it comes to saving for retirement. Women on average make less than men, leaving fewer funds to be stashed away. We also tend to be out of the work place for a period of time, taking care of children, which further depletes the pool from which retirement savings can be drawn. For these and other reasons, many women are beginning to accept that they will work long beyond age 65, if they are able to retire at all. While the status of Social Security in 40 years remains to be seen, it can almost be guaranteed that a comfortable retirement will be even more difficult for our generation.
The beauty of compound interest works in our favor. Yesterday I transferred money into my Roth IRA for the first time. While it’s difficult to know that that money will stay in the same account for decades to come, it is a great feeling knowing that, as little as it is, that money will start to be built upon and will grow to be far larger than if I began 10, or even 5 years from now.
Cheers to wonderful careers that end in relaxation!