7 Excuses That Are Delaying Your Retirement

Time is the most vital element in building your nest egg. Start now, or pay later

Ted Benna, Wiley Press

5. The Economy Is Bad.

“Saving for retirement is for the long term, and a down economy is just a part of the business cycle,” says Benna. Even during market fluctuations it is important not to suspend your contributions; instead make sure your assets are diversified to protect you against market fluctuations. “The fact that the economy is bad now should not prevent you from contributing to your retirement, provided you have at least a seven-year period before you need the money,” says Harris. “The goal is to buy low and sell high.”

6. Retirement Is Decades Away, I Can Wait.

“Time is the most critical element,” says Harris. “Regardless of how much money you have, it is so important to start as soon as possible with any amount you can. Time is more important than how much you put away, because time has much more of an impact.” Benna agrees. “The sooner you start the greater the amount that will come from investment income. The longer you wait, the more you will have to contribute from your pay later to reach your goal.”

7. Social Security Will Provide.

Social Security was never designed to be the sole source of retirement funds. It was designed to supplement. Right now the average benefit is $1,153 a month, which is less than $14,000 a year, explains Harris. “That’s right above the poverty line. Is that enough to maintain your lifestyle?”

For more, read “Too Young to Think About Retirement? Think Again!” in the October 2011 issue of BLACK ENTERPRISE.

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  • Ashley Vaughn

    I really hope people start paying attention to their retirement and actually take a hold of the reins. We must all remember that the only person that will truly look after you, is you! We must not rely on the government as they will be bankrupt soon.

    Ash

  • Annoyed by obnoxious ads

    BeTV ads on the right sidebar are annoying. After clicking on a few of the “MORE FROM OUR PARTNERS” links, I found that the articles, while substantive, are unreadable thanks again to the obnoxious ads.

  • Monica

    Something else to note is that many of us fall into contracts for basic luxuries and then we fell that it’s too much trouble to switch out of them. The result is that we keep paying for those monthly expenses routinely without realizing that all we need to do is spend a few minutes and switch out of them. Here are three basic samples that can yield a savings of at least $120 a month. (1) Switch from cell phone contract provider such as AT&T or Verizon to prepaid plan such as TracFone, which has one of the lower costs per minute at just 3 cents and incredible inter nation rates (same as local rates!). This can save you about $80 a month and the quality is sure to be the same if not better that the contract ball-n-chain vendors. With just $20 a month it’s easy to budget and to manage without much effort. (2) Switch out of the all-inclusive cable to basic cable. Do you really need 100′s of TV channels. Most of us have our 4 basic shows – don’t let them sell you on what you don’t want! This can save you at least $30 a month. (3) Finally, switch from Blockbuster for $21 a month to Netflicks for $8 a month – this even allows you to access your favorite tv shows or movies from your computer!