The Slew of Retirement Savings Excuses

According to a recent survey, saving remains a low priority for many of Americans.  This is a problem, because those who delay investing have a larger disadvantage when they eventually retire.  So what is keeping Americans from saving?  The answer lies under misguided excuses:

• “I’ll save more when I have a better job.”  Foregoing savings until later in life can be costly, as waiting even one decade could mean missing out on a million dollars or more.  The earlier you can begin investing, the better chance you have of retiring comfortably.
• “I’m too old to start saving now.”  Even if you did not start saving at a young age, it is never too late to start.  Also remember, investing does not end when you retire.
• “My house is going to support my retirement.”  Although a home may seem like a good investment, a house has been an extraordinarily poor creator of wealth.  Your home is a place to live, no a sound investment. 
• “I’m too busy supporting my kids.”  Do not risk your own financial future to help your family.  Your kids can take a loan out for a car or college; however, you cannot take a loan out for your retirement. 
• “I don’t know where to start.”  People are often intimidated by the number of investment tools available to them, or have not taken the time to fully understand them.  One way to start understanding retirement planning is to talk to your friends and family so that you may learn from other investors.

See Sean Williams, 7 Terrible Excuses Why We Don’t Save Enough For Retirement, The Motley Fool, Dec. 6, 2006.