When people picture loved ones they might help save for a Life Stage milestone, they often seem to imagine a young person, someone just setting out into the world and in need of nurturing and help.
But older loved ones need caring assistance, too, and the fact is that many parents spend money on their children -- for diapers and school clothes and college and weddings and cars -- at the expense of themselves and their own needs. This leaves many middle-aged and older adults with an under-funded retirement.
While 80% of full-time employees in the United States have access to a company-sponsored retirement plan, many don't start participating until later in their careers, and this can lead to having less in the bank for retirement than they will require to live comfortably. And thanks to maximum contribution caps, there's only so much catching up one can do with a 401K.
In addition, many adult children are looking to give back to their parents. Saving now means an easier transition into retirement and a healthier, more comfortable aging process for their loved ones.
Saving for retirement is, by its nature, a much slower process than saving for other things, and this allows for more money to accumulate, but it also causes goals to be reached more slowly. Setting monthly savings goals and setting aside a certain, pre-budgeted amount without constantly reviewing the lump-sum total may be more useful and more gratifying.
Recommended minimum savings goal: $250,000+
However, because the monetary needs during retirement are so unique, we recommend sitting down with those involved in the savings process to create personalized, monthly savings goals.