Why saving for retirement is such a big deal

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Whether you’re at the beginning of your career or are working on earning that gold watch, retirement can seem like an abstract concept. And while everyone likely has a basic understanding of how to save for retirement, the why can sometimes be challenging—especially when there are so many other more pressing things that are demanding of your financial focus (like buying a home, paying down student loans or other high interest debt, or, you know, enjoying things like vacation or a new car).

Broadly, why you should save for retirement is pretty straightforward: So you can afford to retire. But, again, when that eventual magic moment feels like a lifetime away, it can be hard to keep your eyes on the prize.

Here are three reasons behind why saving for retirement is actually such a big deal.

Reason one: Security

For most Atlantic Canadians, the days of beginning and ending your career with the same organization are long gone. Ditto for company pensions (generally speaking). The one way to ensure you have enough to retire comfortably? Take a DIY approach. You’re entirely in control of your financial future—so take charge and make sure you’re setting yourself up for success.

Reason two: It’s a marathon, not a sprint

The great news is we’re living a lot longer than we used to thanks to healthier lifestyles and better medical care. That means our so-called golden years are lasting longer than previous generations. The result? You might need to save a little more to enjoy a comfortable and long retirement.

The best way to do this is to save a bit over a long period of time. Saving even just $20 a week now is a lot easier than having to put away hundreds of dollars every month when you’re getting closer to retirement.

Reason three: Interest

Plus, interest. Compound interest. That $20 a week now holds a lot of power over the long term. Compound interest is basically earning interest on your interest. So, the sooner you can save, the sooner your money can work even harder for you.

Cultivating good financial habits when you’re young will set you up for the future—as far away as that may seem.

Need a little help visualizing what that might look like? Check out our Retirement Savings Calculator to get a better picture of what the future could hold for you.