“I cannot afford to save for retirement!”
“I will just live off of social security”
“I am going to work until I die”
None of these are a retirement plan.
Here is the hard truth: there is a good chance you will live longer than your job will keep you for.
Your employer does not have to employ you until you are “ready” to retire or until you are dead.
There is no real safety net for you.
As the old Chinese proverb goes “the best time to plant a tree is 20 years ago. The second best time is today”.
The same is true for retirement.
The best time to start saving and planning for retirement is in your 20s.
The second best time is today.
If you are in your 20s you can save smaller amounts and still be ready to enjoy a comfortable retirement.
In your 30s and 40s you can still catch up. You will not have the same results, due to the magic of compound interest, but it is still relatively easy.
In your 50s you have to be much more aggressive to meet your target goals.
By your 60s you will have to consider making concessions to your lifestyle and probably working at least a part time job to make ends meet.
What is your plan? Will you be ready?