New graduates can avoid future debt problems by saving early
Thinking about retirement well in advance can help newly minted college grads enjoy a comfortable retirement when the time comes. A recent survey from TD Ameritrade shows that many of them have taken that lesson on board already.
The survey showed that almost 60 percent of young adults polled said that they planned on increasing their contribution to a retirement plan in the current year, TD Ameritrade said.
The company’s managing director of investment products, Stuart Rubinstein, said that “it’s reassuring to see younger generations prioritizing and taking action when it comes to long-term planning. Starting early is key, keeping in mind they can always cut back if needed. That option can put investors in a much better position, as opposed to starting too late and not being able to make up for lost time.”
The effects of compound interest over a long period of time can make all the difference in building a substantial nest egg, experts say, and can help ensure that today’s workers are well-funded in their retirements down the road.