Retired people are advising millennials to start saving for retirement as soon as possible, to store as much in their nest egg as they can, according to a recent survey.
The poll, from Pentegra Retirement Services, asked retirees who are not collecting a pension what they wish they had done differently when it comes to personal finance. These were their answers.
1. Saving sooner
In the poll, 39% of retirees said they wished they had started saving earlier. In fact, 63% of responders said that their main advice for someone younger would be to begin earlier, giving them a chance to save more in the long run. Advisors suggest that saving the same amount over the course of ten more years would net a far higher payout than if savers had begun a decade later, with small changes adding up long-term.
2. Saving more
When it comes to saving, adding as much as possible to the nest egg also helps. Long term, putting aside even a tiny bit more, say 2% of the total, can add big bucks to the final pile. Over 35% of the retirees agreed on this, with 60% of those asked saying that they would tell younger workers to save as much as possible when they can. Although it might be a struggle now, over a long period, it can make a significant difference.
The ultimate advice is to begin planning as soon as possible. Although it can be complicated, 29% of retirees said they wished they had begun planning for retirement earlier, including paying off debt, making sure they understood workplace pension schemes better and looked into other ways to save. Indeed, 22% said talking to a financial planner would have been a good idea.
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