Over half of young people under
30 are saving for their retirement
One of the things parents like to tell their children is that they need to understand the importance of a dollar.
And one of the ways parents teach their children the importance of a dollar is by buying them a piggy bank so that they can start saving early for their future.
According to a new Gallup poll, more young people are seeing the importance in saving their money.
The Gallup poll results show that over half (56%) of the young people, who are younger than 30, begin saving for retirement.
The poll results show that 7% of young people begin saving before they were 20, 26% begin saving before they were 25, and 23% begin saving between the ages of 25-29.
Financial companies like TIAA-CREF, which specializes in savings for retirement, encourage young people to save early.
According to TIAA-CREF, a person who begins saving when he is 25 will have approximately over $100,000 more than a person who begins saving in his forties.
TIAA-CREF also states that there are tax benefits to investing early in one’s retirement.
A person who contributes to his own savings won’t have to pay taxes on the money he places in his savings.
The only time he will have to pay taxes on his savings is when he withdraws money from his retirement account.
Also, a person will not have to pay taxes on money that the employer contributes to his savings because the employer’s contributions are “tax deferred.”
In the end, this means that a person who begins saving money before he is 30 years old will not only have more money in his retirement, but along the way he will also have more money in his checking account because the federal government will take less of his money out for taxes.
And one of the ways parents teach their children the importance of a dollar is by buying them a piggy bank so that they can start saving early for their future.
According to a new Gallup poll, more young people are seeing the importance in saving their money.
The Gallup poll results show that over half (56%) of the young people, who are younger than 30, begin saving for retirement.
The poll results show that 7% of young people begin saving before they were 20, 26% begin saving before they were 25, and 23% begin saving between the ages of 25-29.
Financial companies like TIAA-CREF, which specializes in savings for retirement, encourage young people to save early.
According to TIAA-CREF, a person who begins saving when he is 25 will have approximately over $100,000 more than a person who begins saving in his forties.
TIAA-CREF also states that there are tax benefits to investing early in one’s retirement.
A person who contributes to his own savings won’t have to pay taxes on the money he places in his savings.
The only time he will have to pay taxes on his savings is when he withdraws money from his retirement account.
Also, a person will not have to pay taxes on money that the employer contributes to his savings because the employer’s contributions are “tax deferred.”
In the end, this means that a person who begins saving money before he is 30 years old will not only have more money in his retirement, but along the way he will also have more money in his checking account because the federal government will take less of his money out for taxes.
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