As a nation, at least until the economic downturn of 2009 and beyond, we tend to be retiring earlier – intentionally or otherwise –and living longer. Businesses are shifting more of the responsibilities associated with retirement saving (or planning) to their workers – along with the risks. The days of company-pay-all pension plans are over; the era of do-it-yourself retirement planning is here.
The message is clear, as one newspaper headline put it, "Save early, save often, save more!" That's good advice regardless of age, family status or income bracket.
- Today's young people, for example, have a far greater role in planning their own financial security than their parents' and grandparents' generations did. In addition to the overall health of the economy, the kinds of choices they make about education, careers and savings will determine how well they do and what their financial futures will hold. The best way for young single men and women to start is by learning to save something every time they are paid.
- For those who are older or married and raising families, managing money wisely and saving more are even more necessary. Top concerns are usually sending their children to college and maintaining their standard of living when they retire. Nonetheless, many are badly unprepared to meet those goals.
