Younger generations like Gen Z and Millennials may feel like it is too early for retirement. After all, a majority of Americans don’t retire until they are 65 years or older. Additionally, some people will say that younger generations are at a disadvantage nowadays when it comes to retirement and planning. But does this extra time to prepare mean younger people have advantages at their disposal when it comes to retirement planning?
Emily Braun, financial adviser with Edward Jones in Willoughby, said younger people are at an advantage when it comes to planning for retirement.
Braun said it is simply never too soon to start preparing for retirement. The earlier you start, the longer your investment can grow, she said.
What Braun loves most about working with younger clients is that they have time on their side, and it could really make a huge impact on what their dream retirement can look like, she explained.
“I recently brought on a new couple as clients in their late 20s,” Braun said. “And after learning about what’s most important to them, I helped them create a personalized plan, and it actually allowed them to retire earlier than they ever thought they’d be able to. They’re going to travel, they’re going to buy their dream lake house. And so, really what helped was that they are starting so young.”
Braun said retirement today is different than it was a few generations ago, adding it is more rewarding. She also thinks the vision of retirement for older generations is different from what people envision it today.
“I think people are starting to have more dreams, what they want to do in retirement is more important, and they have those visions like travel or buying your dream house,” Braun said. “I think the younger generations today are starting to envision what that really looks like for them.”
What should younger people do with all of this time?
Braun said they should think about working with a professional and really understanding your goals for yourself.
“You can kind of figure out what investments are best for you,” Braun said. “And getting that compound interest is going to be really life changing when it comes to your retirement plan.
“So, even though putting away an extra $100 a month doesn’t seem like a lot, when you have all this time on your side, it really will make a huge impact on your retirement.”