Saving for Retirement
By Haley Kaiser
If I had to ask anyone from Gen-Z what they are most stressed about, chances are it is about money.
Money is what makes the world go round and what helps us live our lives. Although, most of the time
financial stress doesn’t stem from what you spend your money on. It’s more so how to save your
money. Generation Z is looking for tips on how to save for retirement, so I’m here to give you all
some tips on how to save correctly.
The overarching question is, when should youstart saving? Ideally, you should start saving as
soon as possible. Although, many start in their
20s, because this is when they get their first job
and paychecks start rolling in. Saving at a
young age allows your money to generate its
gains through the interest you earn on savings.
Right now the interest rate on savings accounts is around 2.14% but is expected to grow to 2.41% in
2021 (Wall Street Journal).
The next question is, how much should I save? Many financial planners recommend that you start by
saving 15%-20% of your income. Although, this is your retirement fund so you should use an online
calculator to help figure out how much you should save based on how much you make (this is so the
numbers are specifically tailored to you and not a general amount). When looking at how much to
save you should take into account the current and forecasted inflation rates. As inflation rates
increase, prices of future goods and services will increase, thus altering how much you will spend on
necessities. Currently, the inflation rate is “1.8%, as published September 12, 2019, by the U.S. Labor
Department” (US Inflation Calculator). It is forecasted to be 2.24% by 2024.
The last question is, what if I can’t save enough? Your main goal then is to try to automatically move
a chunk of your paycheck to your savings. This way you don’t have to budget for retirement because
you are already paying yourself first. Now, if you don’t want to divert some of your paychecks to
your savings, you should start thinking of creating a budget. You are then able to reflect on your past
spending and find new ways to cut down on unnecessary spending. Fuhrer increasing money sent to
your retirement fund.
Works Cited
“Current US Inflation Rates: 2009-2019.” US Inflation Calculator, 12 Sept. 2019,www.usinflationcalculator.com/inflation/current-inflation-rates/.
The answer is simple: as soon as you can. Ideally. “When Should I Start Saving for Retirement?”
CNNMoney, Cable News Network,
money.cnn.com/retirement/guide/basics_basics.moneymag/index.htm.
“U.S. - Projected Inflation Rate 2008-2024.” Statista, www.statista.com/statistics/244983/projected-
inflation-rate-in-the-united-states/.
I agree that you should start saving money as soon as you can. I can relate to that because I am trying to save money right now. Saving money is important, especially if you want money to spend in the future. Like Emily said in her post, if you can't save make a budget. If you can't save now, eventually start saving in the future because it can definitely benefit you. It is also surprising to see that financial planners say you should only save 15-20% of your income. I honestly thought they would say save more than that.
ReplyDeleteThese are some great tips, but something that I realized while reading is that there wasn’t much, if at all, addressing about what to do if you can’t make enough money to have anything to save. This is all under the assumption that every Gen Z will be able to make enough money to afford themselves some extra for savings. This can be good for those who know they’ll get into a high-paying job, but for the rest of people who won’t be able to right out of college, either because they have student debt or they just can’t find a job that pays high enough, these tips don’t do much. Taking this perspective, it’s clear that these tips, while nice tips, don’t actually do anything for the majority of new adults. In the previous generations, it was easy to do these things and save up very easily, as everything was cheap relative to their income. However, as the inflation rates are estimated to rise, and as the cost of living has risen greatly, the basic job doesn’t allow for much wiggle room for those wanting to save.
ReplyDeleteThanks for the great information. I agree it is essential to start saving at a young age, as the snowball effect is what accumulates money over the long run. I know that investments over a long period of time will grow exponentially, but I wonder if it's not actually as good as it seems since the price of goods will increase, lessening the value of your investments.
ReplyDeleteFrom this article, I learned that financial stress is not brought upon by the things that money is spent on; it is brought upon by how much is saved. This is true because there are adults in their forties who don't have much saved for retirement, and even those who are in their early twenties are commonly finding it difficult to save for retirement because they are hoping to purchase a home or some other reason. Moreover, adults in their mid twenties may not sense the urgency of retiring at their stage because they think it's a long time away but time passes and they are in their fourties with very little saved. It is important that everyone set aside a portion of their income for retirement because social security is not sustainable, especially if there are adults who are nearing their sixties with still very little saved. However, I think that along with saving money for retirement, adults should not try to save every penny for retirement because at the end of the day, a penny is still just a penny. Adults, while keeping in mind that retirement is not as far away as they imagine, should also have that freedom to spend lavishly on occasion as long as they budget well.
ReplyDeleteI agree that starting to save money at a young age is crucial to setting yourself up for the future. The effect that putting a portion of your paycheck into savings as soon as you get your first job is huge and will leave you with a lot more money than if you were to start saving in your early 30's.
ReplyDeleteI agree that saving for retirement is something that generation Z is stressed about as many people want to be well off when they are ready to retire. It is being preached to save early and often from a young age. This is because it takes A LOT of money to be able to retire on and that's why young people are supposed to start retirement funds for the future.
ReplyDeleteI agree, saving as soon as possible is essential. In my blog post, I talked about the value of time in saving, which supports everything you said. If you start saving in your 20s, that money will be earning compound interest for decades before you start using it. Most people say they don't have enough money to save any, but they create their budget based on their income. If they pay themselves first and automatically have a portion of their money go into savings, they can recreate their budget based off of their "new" income.
ReplyDeleteI think that saving for retirement is super important and that I have even thought of starting now. When I was looking at the chart I was surprised by the rates going up. I think that would be great for me but where is the money coming from the government?
ReplyDeleteI agree that setting aside money for retirement as soon as possible is extremely important. Even if you are still in college, still paying off loans, or even barely making it by. It doesn't have to be 15% right away. It could be 0.02% until you get on your feet. In fact, we as highschoolers should start doing this now if we have a job. I almost never touch my money ever (spending 5$ physically hurts me) so it wouldn't be a problem to store some of it away in a retirement fund. That way, 50 years down the line, I'll be all set and I can stop working. Do you think it's better to struggle to work long hours young rather than to keep working when you're 70?
ReplyDeleteThis is interesting as it is something that we were just talking about in class. I don't really think of saving money for retirement right now as something that is at the top of my list of things to do. But I know I should, or at least start thinking about it sooner than later. I personally, hadn't really considered the inflation rates as something I'd worry about, but it makes sense, and is very valid! I agree that it is important that if you feel like you don't have enough money to save some, that it is important to take money out of your paycheck so that you don't miss it, or at least start a budget to see where you are spending your money. Overall, I think that retirement is a long ways away, but you are right that it is best to start saving whenever possible.
ReplyDeleteI had made a blog about the same topic and I never thought to include the inflation rates. That is something worth researching about to find out more information because if you start to save for retirement, years go by and you don't have enough money to pay for your goods. You have to realize when it is time to decrease the percentage that is being taken out of your paycheck to better suit your living situation. I liked how you narrowed the blog to just Generation Z because a lot of people don't realize that prices were never this expensive and we have to learn how to pay for these overpriced expenses.
ReplyDeleteI believe that thinking about inflation rates was a good thing to bring up in this article because I have never even given that a thought. Are you sure that the average saving account's interest is 2.14%? That seems offly high to me. Maybe certain savings accounts have rates that are that high but they require a certain down payment and to maintain a certain balance. Also you should specify the age ranges of generation Z because I have no idea what age range that is.
ReplyDeleteI agree that saving for retirement is very important and that you should pay yourself before anyone else. I like the idea of budgeting if you can't save a ton of money but a little can go a long way. If a penny doubles everyday for a month it can be over 10 million dollars.
ReplyDeleteI agree, saving early is the best option because when you get older and go into retirement you wont have any income to help you out. I never took into account that inflation would increase and that was a good point to put out there because you can never guess how much gas is going to be the next day because it is constantly changing and once the inflation starts increasing over time everything will start costing more and the more things cost the less you will be able to put into saving.
ReplyDeleteThe tips you provided are really essential to begin saving for retirement. I think that time is the most valuable aspect of saving money in general because with time comes the increase in interest. Your point about setting up an account so that a certain percent of your money automatically transfers. "Paying yourself first" is a great way to both reward yourself and save up the money you need for the future. The inflation rates surprised me when I read them because I usually never think about how that could effect my savings and retirement, so it is a good thing that you mentioned that in your article. When creating a budget and setting up a savings account, I will definitely make sure to regard the inflation rates.
ReplyDeleteI think that the info graphic says a lot about how diverging the economy is.Last year, there were forecasts predicting a rise in the interest rates substantially, but now it seems like there isn't even going to be a rise in the interest rates in the coming years. With more and more people becoming financially savvy, banks are not able to raise their interest rates because they just can't afford it. With inflation rates rising, like you mentioned, it has to be incredibly difficult to even make money in the future when your money is decreasing in value.
ReplyDeleteI agree that setting money aside and early is very important for Gen Z and can be very stressful. Saving money for retirement is crucial for your future after working. When looking at the chart you added it was very surprising for me to see the rates keep going up and up by each year. I was also surprised by the interest rate on savings accounts increasing for people saving up for retirement. I really liked how this blog post was written, it was very easy and interesting to read. It was also easy to understand what advice you were giving to Gen Z on how to specifically save up for retirement with minimal stress.
ReplyDeleteIt makes total sense to start planning to save for retirement. Time is of the essence in saving money because more time = more interest. “Paying yourself first” is a great way to save money and prepare for your future. I was really surprised by the inflation rates because I didn’t really think about how greatly inflation rates could change my retirement savings. I will definitely keep that in mind moving forward!
ReplyDeleteThis is an interesting topic because now we all know what to do for our savings from this point on so thank you for this topic however there is something to consider because if a big chunk of our weekly paycheck goes to our savings then how do we manage rent money for our apartment or the electric and water and cable bill for your house, so how do we go around that because its a requisite to pay your bills because otherwise, you don’t get any electricity or any water to your house so how would we go about that issue?
ReplyDeleteI, like nearly everyone else, also worry about saving enough money for retirement. You gave some great tips in your article, but what if you can’t get a high enough pay? With inflation rates going up like you mentioned, how are people who can’t obtain a higher paying job supposed to save up. Going back to school to obtain a degree that could get them a better pay costs even more money. In addition, the cost of living is increasing around the world and it’s difficult to save when your expenses are increasing at a faster rate than your wage. I agree that it’s important to save up as much money as you can, but I wonder how we can help those who live paycheck to paycheck and can’t afford to set aside any savings.
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ReplyDeleteI agree that we must start saving ASAP, I also agree that this time doesn't really come until you have a good and stable job. I think that once this happens, people should spend most of their money in a savings account, instead of going crazy with their first paycheck. This is because this will allow people to have more money in the future, this also means that you will be able to provide your family with better things. So I think that your mid-20s is the best and most efficient time to start saving.
I agree that we need to start saving money right now if you want to be successful, not only will you gain more experience with saving in the future but you also are then able to save longer giving you more money. Plus when you are in high school you aren't paying any expenses as your parents most likely are so this would be the perfect time to save.
ReplyDeleteThe topic of saving for retirement is very important and many of these tips could be helpful for the future of myself and others. The most important tip you shared was saving money early, in my opinion. I found it interesting that the interest rate on savings accounts is around 2.14% but its expected to grow up to 2.41%. To me, it's a good thing that it's increasing. I will definitely keep these tips in mind later on in life.
ReplyDeleteIt's very nice to have some of these statistics to work off of as college and adulthood grow nearer and nearer. However, I think the only issue with this article is that last paragraph. It's a bit of a hand-waving argument that I personally would love to have more fleshed out. I know a lot of people that physically don't make enough money to budget because they know they'll have to blow through that paycheck by the next one just to pay the bills. For example, I work at Starbucks, and our pay rate isn't very good, especially considering some of the hours our full-time workers put in. This has left some people in positions where they need to get multiple jobs, or they don't allow themselves any freedom with their money, simply because they're forced to do so. These people can't really budget because, to support themselves and their families, they need to blow through their $800 biweekly paychecks. How do you suggest these people deal with these problems?
ReplyDeleteI like how you didn't just state your facts, you backed them up with data. I also liked how you included the graph to really show how interest rate is really going to be making a turn ad that is all the more reason to start saving money now.
ReplyDeleteI had no idea the interest rates were expected to go up by that much in just a few years. This is good for people who have savings accounts (which should be everyone). However, with inflation also expected to rise, can I still expect my savings account to rake in a profit? It seems to me if interest rates didn't go up along with inflation, we'd all be losing money by having a savings account.
ReplyDeleteI like the points that you brought up. A lot of us are heading off to college next year and are going to have to worrying about how much we need to save up to not be struggling. The obvious answer being, don't spend money you don't have and start saving as soon as possible but like your last paragraph was mentioning, what about the families that have to live paycheck to paycheck? How will the increasing inflation rates affect them as they are already struggling to maintain money?
ReplyDeleteThis article really made me think about my future and made me glad that I already have a savings account. I found it interesting how many different factors affect the amount of money that I save and how much I could be receiving. These are all little things that can really affect your savings that I never really took into account when I started saving.
ReplyDeleteIt is crazy to me how it is recommended to start saving at such a young age for a time that seems so far into the future, however, it makes a lot of sense to do so. Although starting when you are in your 20s seems ideal because you are finally making a steady income, it makes more sense to start now so that your money can grow with interest. The statistics you Incorporated into the article are ones that are never really given thought, such as the statistic about the inflation rate. It never crossed my mind that prices on good would increase causing even more money to be spent from your account on the things we need.
ReplyDeleteit's nice to know that the average interest rate is forecasted to increase in coming years knowing that I'm going into the world and will be able to save money that way. although how many people are there that get their first job when they're 20.
ReplyDeleteTo start, I really liked how you incorporated many different statistics in your writing. When it comes to retirement funds, many people keep taking money out of it and the amount keeps getting lower and lower. But even the ones that save up until they can't no more still complain that they can't get enough. Overall, your writing piece was very well written.
ReplyDeleteSaving up for retirement seems so far away, but it is already nearing close for those of us who are approaching our 20's. No matter how important I know it is, it's likely I will still probably struggle to start taking money out my paycheck when I'm in college. Not only do I need the money to live right then and there, but also I'll be paying bills and thinking about loans. It seems simple in theory, but in practice, it is harder to make those sacrifices in he moment. Saying that you can cut down on eating out and occasional snack is different than actually seeing the food stand and choosing to walk away. I think this will be a challenge we will all have to be ready to face as we begin to grow up.
ReplyDeleteIt makes total sense to start planning to save for retirement. Time is of the essence in saving money because more time = more interest. “Paying yourself first” is a great way to save money and prepare for your future. I was really surprised by the inflation rates because I didn’t really think about how greatly inflation rates could change my retirement savings. I will definitely keep that in mind moving forward!
ReplyDeleteI took personal finance last year, and I agree with this article. I know that saving for retirement is a big deal and if you don’t start as soon as possible, you won’t have enough to support you after being unemployed. More people should be educated and saving and how to do it and when to start it. Teens and young adults these days don’t realize how important it is to save. I think that this article is very important to read because you did well on the tips and didn’t just tell the audience what the tips were, you explained them so that you weren’t blindsided when meeting this time to actually achieve this goal.
ReplyDeleteI really like how many different statistics you had to prove that your idea was correct. also I definitely agree with you that everyone needs to have a designated plan for saving so they will actually save
ReplyDeleteGood job supplying a calculator that can predict the interest rate forecast. As years go on there are factors to consider when figuring out how much to save, factor's like inflation and the interest rates of our accounts. It's a crucial part of our life and right now we need to be informed on it's important especially now when we are young and haven't even started our first real job.
ReplyDeleteI agree that we should all start saving as soon as possible, which is one of the biggest thigns we learn about in finance. Saving for retirement is a huge deal because you need that support when you are ready to retire. I like that you explained tips to achieve this goal as well as it could help others a lot.
ReplyDeleteI agree that you should start saving at a young age. From what we just talked about in class a couple days away looking at people who started saving in their 20s have more of an avanages and will be able to save more than people that start in their 40s or older. It is weird to think that I will be needed to think about saving and investing in just a couple of years. I don’t think people really realize how hard it is going to be when you first start.
ReplyDeleteI agree with your article, the thing I am most worried about for mu future is my finances. I know that I need to start saving now but that's a really hard thing to do. I hope that I am able to stick to a savings plan so I have enough money to retire. I like how you added the calculator link so people can become more informed interactively. I will definitely keep these ideas and statistics in mind when I am planning for my future.
ReplyDeleteI think this article is great because it relates to everyone at our school right now. A lot of Gen Z need to be informed and know more about savings so they can make the smart choices needed for their future when it comes to money. Also, I agree with you when you say saving young is a smart idea. You are able to gain a lot of interest on money that you invested and all the way up until your retirement or a big purchase you make, you can be getting basically free money.
ReplyDeleteIt's very smart to include inflation rates. Maybe you need a million dollars today to retire but soon it may be 3 million. If we don't start saving early, we may never get close to the amount we need to survive. Even if we don't make a lot of money in the beginning, it's still important to start (even with just a little a week)
ReplyDeleteI totally agree that you should start saving young. It's insane how much more money you'll have for retirement if you start saving younger. It's really important for us to save because it's what were going to be living off of after retirement. Also I love the statistics you used and the graph!
ReplyDeleteI agree that it is good to start saving early. One of the things that I am most worried about is my finances for when I am older, so it is smart to save early.
ReplyDeleteI love that you chose this topic because it relates perfectly with what we are learning in class. I also do agree and know that generation Z and me included are horrible at saving money. I tends to spend way too much money. I also know that I spend more money on wants than needs, which I learned from tracking my spending earlier in the semester this year in class. You also talked about how important it is to not just save but too do so early. From earlier classes this week, I found that saving earlier can actually leave you with hundreds of thousands more when you retire. If you start saving at 20, like you said, you will be so much happier and set for you future. I also really like that you talked about the increasing interest rates. This is a great reason to save. Interest rates give you even more money than you save and grow your money over time. Since they are increasing, saving is even more worth while and you can gain a lot of money from that interest. Overall, I think that we all need to read this article because saving is so important and can change the rest of our lives. If we simply start early and save, we can enjoy luxury vacations in the future and have the dream retirement we all want!
ReplyDeleteI agree that it’s important to start saving money as soon as possible for retirement, but it’s also important to realize that if the stock market crashes, then you can potentially lose hundreds of thousands of dollars. That’s a scary thought. Investing money into a 401K or a ROTH IRA is important because it allows you to save for retirement, but the money is in the market, meaning that you can lose money if the market crashes. You’re entire retirement savings is dependent on whether or not the stock market is doing well, or if it’s crashing. In this day and age, the market is doing “ok” but who's to say that in 10, 20, or even 40 years, the stock market will still be doing well. Saving for retirement is very important, but if you have $1M and the stock market crashes, you may be left with only $400,000. That’s $600,000 down the drain, and this is your life savings that is supposed to take care of you for the rest of your life.
ReplyDeleteI'm glad you choose this topic to talk about because it truly is something very important that our generation needs to start thinking about more of. I agree we totally should start saving money as soon as possible and ideally have a plan for the future so that we are ready and prepared for what is to come. When it comes to money, having a plan and saving money can't do any harm. It will put you ahead of the game, it will make you feel like you are in a more comfortable situation, and it will help in the long run when you do get to retirement. Saving your money through the years, and especially at a young age, will only put you ahead and make sure that you are in a better place. It is also great in my opinion that you came up with all these ideas, such as creating a budget for yourself and pacing yourself with your money. This way you are prepared and you can in the long run, have money to support yourself. There are great ideas in here and many people from our generation should start thinking about their plan on saving money for retirement.
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