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For many working adults, retirement seems like a distant goal. Yet for many more people, such a thing might not even cross their minds.

The future can take many different directions for each individual. However, the hustle and bustle of daily life often forces retirement planning into the background until it’s too late.

What might cause some of this hesitation? Many myths about retirement planning may cause others to put off making important decisions. Consequently, these barriers prevent individuals from finding the right resources and tools to help them take action.

Let’s go over some of the most common retirement myths and how you can move past the noise to take a more proactive stance on your future.

Myth 1: “Only Older Workers Need To Worry About Retirement”

According to a 2024 TIAA survey, only 20% of Generation Z are saving for retirement. The survey describes that many factors affect Gen Z’s hesitation about retirement planning, including:

• Rising costs of living
• General indecision about where to start
• Prioritizing experiences over saving
  

Generally speaking, there’s a prevailing cultural trend where living for the moment takes precedence over planning for the future. Naturally, this is a normal response to have, especially if someone is relatively young and has their whole life ahead of them. Conversely, someone might have very little wiggle room financially after covering all of their living expenses, rendering retirement planning a nebulous concept.

In truth, thinking about the future is the key to maintaining financial independence throughout life. A key motivator for retirement planning is ensuring you have the funds needed to maintain your lifestyle as you age.

Remember: time is your biggest ally when saving for retirement. Saving early in your career sets a foundation for success. Much of this has to do with the concept of compound interest, as well as having the ability to weather changes to the economy over the long run.

Having retirement savings that grow through most of your working life also provides the flexibility and freedom that younger people value. A nest egg affords opportunities to switch careers, take on more fulfilling pursuits, and broaden your horizons.

Myth 2: “Retirement Is Only for the Wealthy”

Perhaps an even greater stumbling block is the notion that you might not have “enough” to build that nest egg in the first place. A popular misconception about retirement is that it’s only accessible to people who are high earners.

Retirement can mean different things depending on who you ask. However, it isn’t just for the rich. It’s a goal that everyone can reach.

Remember our talk about lifestyle creep? Having more access to money also increases the temptation to spend beyond one’s means. This can happen to anyone, even to people who make a lot of money, due to poor planning and misguided financial decisions.

Here’s the kicker: retiring requires planning and informed decision-making. If you can do these things, then retirement is a lot more attainable.

To get started with retirement planning now, all you need is:

• A flexible budget that leaves room for saving
• A place to allow your retirement savings to grow
• A commitment to save on a regular and consistent basis
  

With a few adjustments to your budget, you can set aside a bit of money every paycheck towards retirement. You will be in a stronger position if you can automate your savings.

Taking tiny steps over time makes a huge difference. Saving consistently will allow you to make great strides as you reach retirement age.

Myth 3: “You Can Worry About Retirement Later in Your Career”

There is always a temptation to put off potentially life-changing decisions when we believe we have the time to do so. While retirement may feel like it’s a lifetime away, you will be much better off if you always include it when evaluating your goals.

Returning to the concept of compounding, saving over more extended periods of time tends to generate better results. Not only that, it lets you consider more options and diversify your strategies.

As you near retirement age, trying to play “catch-up” on your savings doesn’t provide as much flexibility. You’ll have fewer options to grow your savings, because your time horizon is much narrower. It also creates more pressure to generate a higher return to compensate, which may cause you to make rash decisions that yield suboptimal results.

Also, your retirement situation won’t be influenced by finances alone. Your health, abilities, and lifestyle might be vastly different decades from now. Consequently, these changes might impact your career prospects, income flow, and options.

A lack of an actionable retirement plan could leave you woefully unprepared for significant life changes down the road. Pay yourself now by drafting a retirement plan, committing to saving, and evaluating your strategies periodically. Your future self will thank you.

Take Control of Your Future Today

Remember that retirement planning is for everyone, no matter the age or income level. All it takes is getting started. If you don’t know where to begin, remember that talking with an experienced financial professional can help you get the tough questions out of the way and draft a plan that best fits your needs.

Retirement is also a personal concept. It should supplement the life you want to live, not dictate it. Start small and stay consistent. Before you know it, you’ll be hitting major milestones and realizing a future that best fits you.

Take your first steps towards retirement planning with First Florida. We offer many resources that can make saving for the future both an attainable and rewarding experience. Visit our Featured Articles section, where you’ll find topics on retirement, budgeting, and more.