Many younger Americans find it hard to save while paying back student loan debt which stands at an all-time high, according to the USA Today. Olivia S. Mitchell, Professor of Insurance/Risk Management and Applied Economics/Policy, and Executive Director of the Wharton’s Pension Research Council at the Wharton School of the University of Pennsylvania, reminds these young adults that “it is important to get in the habit of ‘paying yourself first’ – that is, saving for retirement.This is particularly true if your employer offers a tax-qualified 401(k)-type plan with a match.”
The Vanguard Group reported that average retirement savings for those younger than age 25 was $3,900, which rose to $21,500 for Americans age 25-34. JP Morgan Asset Management recently released its yearly Guide to Retirement, where it reports that young adults must start saving for retirement right away.
Read the full USA Today College story here.