July 22, 2021, | AtoZ Markets- "Zoomers" are those born in the late 1990s and early 2000s, otherwise known as Generation Z. There are millions of people in the Zoomer category, and their career paths vary exponentially.
Regardless of their career choices, they must think about retirement. Of course, this doesn’t feel like a priority when retirement is 40 years away. Unfortunately, some people never think about retirement until it is too late, and they don't have enough funds to make ends meet when reaching their senior years. If you’re a Zoomer, then try some of these ideas to stay mindful of your future.
Earning, Pensions, and More
Most Americans have taxes deducted from their paychecks throughout their lives, which fund Social Security and Medicare. Payroll and self-employment taxes direct funds to those government-based retirement benefits, and how much you pay factors into how much you get out. While this may seem like a good way to plan for retirement, there is always talk about the system going bankrupt.
People are living longer than when Social Security was first instituted. This means that younger people will need to pay more in order to cover costs for older generations. The alternative is for the government will need to “print money” which can result in hyperinflation. Rather than relying on this system, consider other ways to save money on your own. A career change, or a second job could help. You might even seek out a job that comes with a pension or one that comes with a 401k plan that you can pay into, pre-tax—more on that later. For now, just try to save more money in anticipation of retirement.
Side hustles are all the rage now. Earning money from a hobby could deliver supplemental income that carries into your golden years. So could delving into work-from-home side jobs, such as data entry and transcription. A person could handle these jobs well into their 70s and make extra income.
Investments and Savings
Living from paycheck to paycheck might catch up with you eventually. So does debt. Make sure you put money away in safe investment vehicles that make it easy for you to save for retirement. Do this instead of racking up those credit card bills.
If you’re a Zoomer, try to live within your means and start saving as early in life as possible. The years catch up with people, along with outstanding credit card debt and back taxes. Does a job offer a 401(k) or another retirement plan? These perks could prove valuable when planning on retirement.
A 401(k) lets workers direct money from their paycheck to an investment account, pre-tax, and often the employer matches the funds. Putting money into stocks, bonds, and individual retirement accounts may help, too. Just be careful about your investment choices. It’s generally a good idea to diversify across a broad range of companies and industries.
A smart budget and a job that pays well allow people to save money and direct investments. Ultimately, starting early assists people interested in retirement savings. It is never too early to save, but one day it might be too late.