FOSTER CITY, Calif., Sept. 30, 2020 /PRNewswire/ -- Results from a new MoneyRates.com survey make one financial concept abundantly clear: saving early in one's career is crucial to having the option to retire early.
"Looking at what has worked for people who retired early, getting an early start on savings seems to be a key factor," says Richard Barrington, MoneyRates' senior financial analyst. "Those who are still working after reaching age 65 are much less likely to have started saving for retirement in their 20s and 30s than those who were able to retire before age 65."
See the full information here: Early Savings Pays Off in Early Retirement.
The survey also reveals:
- Just over 1 in 5 (21.6%) workers younger than 65 are retired and 8% of those younger than 65 are semi-retired
- Roughly two-thirds (66.9%) of those retired or semi-retired before age 65 started saving for retirement by age 40
- Of respondents 65 or older, 16.2% are still working full- or part-time
- Of those still working full- or part-time at age 65 or older, only 18.2% started saving for retirement by age 30
- In contrast, 23.4% of those still working at age 65 or older have not yet started saving for retirement
MoneyRates offers actionable advice to help consumers retire early, such as making payroll deductions into a 401(k) plan, depositing a portion of each paycheck directly into savings, shopping for the best interest rates, and planning a budget around retirement saving.
"Someone who makes saving for retirement a priority has a better chance of saving money more consistently," adds Barrington. "There's nothing wrong with continuing to work after age 65. But ideally, it should be a choice, not a necessity. The message for younger workers is starting to save now, and learning not to overspend, gives more freedom of choice later on."
MoneyRates queried 1,000 people aged 45 and older in an OP4G survey to find out where they stood in terms of their retirement planning.
MoneyRates' spokesperson Richard Barrington is available for commentary on this study as well as banking and personal finance topics.
MoneyRates is owned and operated by QuinStreet, Inc. (Nasdaq: QNST), a pioneer in delivering online marketplace solutions to match searchers with brands in digital media. QuinStreet is committed to providing consumers with the information and tools they need to research, find and select the products and brands that meet their needs. MoneyRates is a member of the company's expert research and publishing division.
Since 1998, MoneyRates has served as a personal finance resource designed to help readers make the most of their money. In addition to a variety of financial calculators, MoneyRates researches and tracks CD, savings, and money market rates offered from over 400 financial institutions across the country to offer expert advice on banking, investing and retirement planning.
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