Are you a Millennial? Well, I have some good news for you! You’re at the perfect age to take a few simple steps that will eventually give you financial freedom in your retirement years. Even though that might seem far a way, it’s simply good financial smarts to set aside money today for financial security in the future.
In 2016, Transamerica conducted a 25-minute online survey of 4,161 full-time or part-time workers who are employed by for-profit companies with at least 10 workers.
What’s working for Millennials?
Approximately 72% of millennial survey respondents said they’re saving for retirement in an employer-sponsored retirement plan or outside of work. The median about these millennials are saving is about 7% of their annual salaries. When it comes to saving for retirement, Millennials are in the middle of the pack, with about 58% actively saving for their golden years compared to 55% of Baby Boomers and 65% of Gen Xers.
Millennials planning for retirement:
Millennials Starting to Save at Age 25:
- To retire at age 62: Save 15 percent of pay
- To retire at age 65: Save 10 percent of pay
- To retire at age 67: Save 7 percent of pay
- To retire at age 70: Save 4 percent of pay
Millennials Starting to Save at Age 35:
- To retire at age 62: Save 24 percent of pay
- To retire at age 65: Save 15 percent of pay
- To retire at age 67: Save 12 percent of pay
- To retire at age 70: Save 6 percent of pay
When you use the money you have (your principal) to purchase assets that have the ability to increase in value you are investing. Over time you will accumulate these assets such as mutual funds, bonds, or stocks and you will see that your financial security and net worth will have grown during this period. There are several different investment options to choose from such as RRSP and TFSA.
Save and invest your money to give you financial freedom in your retirement years!