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How Young Professionals Can Outlive Their Money

One of the more interesting bits of data to come to my attention recently is the implication that young professionals are confident about their chances for a comfortable retirement.

State Street Global Advisors released the results of a survey that indicate that 82% of those under the age of 25 are “somewhat” or “very” confident that they have enough for retirement.

This is a stark contrast with those who are older, who are much less sanguine about their own chances of outliving their money.

Are Young Professionals TOO Confident?

The same survey that seems to imply that some members of Gen Y [3] are very confident about outliving their money, though, indicates that those under 25 also have a much higher cash-out rates on their retirement plans than the general population (27% vs. 11%).

What this tells me is that young professionals might be optimistic about the future, but unless they get serious about their retirement planning now, they will be just as unsure as the rest of us when they get older.

Retirement looks like a long way off for someone who is under 25. After all, if you plan to retire at age 55, that’s 30 years. To someone that young, 30 years is an eternity. Even if withdraw money from your retirement account now, you’ll have plenty of time to make up for it later (so you tell yourself).

How to Ensure that You Outlive Your Money

If you want to outlive your money, you need to start planning now. The earlier you plan for retirement, the better off you’ll be. Here are some of the things you should be paying attention to right now, if you really want to outlive your money:

Now is the time to prepare for your future. Don’t assume you’ll have more time tomorrow. Tomorrow has a tendency to slip away.

(Photo: Tax Credits [7])