Planning for retirement is like going to school for a better education and lifestyle. Kids do not realize it today, but the benefits outweigh the risks. Not preparing today is like not going to school.
Most Americans are so behind on retirement without realizing the damage done to their future. Saving trends are getting worse, even when companies have been pushing for retirement plans, such as 401(k).
But what are Americans doing?
Simply put, PROCRASTINATING!
Nowadays, everything is about how much one spends; the feeling of short-term fulfillment and gratification Americans receive when spending their paychecks from their hard-earned money and not putting some money aside.
Another major factor is financial literacy. Most people do not comprehend the power of compounding (check our blog article on compounding ). Research shows that only 22% of people understand the compounding approach. Basically, the concept is defined by interest earning on interest, so your money will grow faster the more interest accumulates.
If more people embraced the notion of compounding, people would be more open to retirement; hence, a more fruitful future.
Don't wait, start today!