It may be surprising to hear that approximately 67% of people in their twenties have already started saving for retirement. Despite all of the challenges, student debt, a tough job market, saving for a first home, the twenty somethings are saving!
Even more, a recent Transamerica survey reported that most people who are now in their 50s did not start saving until age 31.
Yet, there is some bad news here which I see as an opportunity. Nearly 20% of people in their 20s who are saving state that they know "nothing" about how they should invest and 27% said they did not know how their savings are currently being invested. This scenario is proving to be more popular than one may think.
It is likely that these unknowing savers are putting away money in their 401(k), do not understand how it is invested and do not have the time to figure out how it should be invested. In fact, 24% of savers in their 20s report investing in low-risk and low-return investments which are typically more appropriate for those closer to retirement age.
Take this opportunity to speak with an advisor. Talk about your goals, even if they are short term, and work to understand how you should be invested. It is your money, your life, and your future. If you take control you only better your chances of success.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).