When you think of planning for your career and then your retirement the two items being the same usually don’t equate. However, they are pretty much the same thing and require the same planning. Here’s why;
According to a recent article on FoxBusiness.com, “Research shows that compared to baby boomers, generations X Y, and Z (also known as Millennials) are motivated less by money and more by a desire for work-life balance and finding meaning in their work. If you fall into one of these groups, it’s likely you will try out multiple professional identities in your quest for professional fulfillment.”
This means a longer work cycle or a more creative work cycle. Whatever you chose to do in life, and you will probably have to reinvent the wheel a couple of times, you are ultimately responsible for your retirement. The money you have at retirement, the age you retire, and if you have to work full or part time after retirement is all dependent on the decisions you make when planning out your career path.
The bottom line is savings. You should be socking away 15% of each paycheck towards your retirement fund. It doesn’t matter what job path you are on, or what your goals are, savings is vital and essential to retirement planning. It also helps you define who you are when it comes to work. Having a retirement cushion can afford you the option of taking a job because you like it vs. accepting a job because it pays well.
When you are planning your career over the next five, ten and maybe even twenty-years ask yourself how you envision your retirement and what it is going to take to get there. While you are defining yourself in life, save your $$$ for retirement. At the end of the day, the savings will help you determine just how long you will work and where and when your career path will end.