What’s the recipe for a successful and comfortable retirement? There are many ingredients, including disciplined saving, self-restraint when it comes to spending, a plan to pay for medical expenses and much more.
Three of the most important components of any successful retirement involve your mindset and how you approach the retirement planning process. Call them the “3 Rs.” If you can successfully master the 3 Rs, then you will likely have a solid financial foundation for your retirement.
A recent analysis of the Federal Reserve’s 2013 Survey of Consumer Finances found that the average working-age American couple has only $5,000 saved for retirement. An overwhelming majority of couples—70 percent—have less than $50,000 saved.1
As you might imagine, that amount is probably far less than those couples need to fund their desired lifestyle in retirement. As a new graduate, you likely don’t want to end up in the same position.
Unfortunately, many young workers haven’t taken the steps needed to avoid a similarly underfunded fate. A study from the Federal Reserve found that 40 percent of those ages 18 to 29 have given no thought to retirement, and 50 percent have no retirement savings or pension.2