Bohemia, NY (PRWEB) October 14, 2013
Charlotte retirement planning company, Hobart Financial Group, responds to an article published by Forbes on October 3rd, which discusses common retirement myths and the consequences of Americans not appropriately planning for retirement.
According to the Forbes article titled “7 Retirement Myths That Could Produce A ‘Lost Generation,’” there are seven common mistakes that Millennials make in regards to retirement planning. Some of these include a person believing they are too young to plan for retirement, attempting to pay off student loans before starting retirement planning and setting an unrealistically low retirement number.
In an annual nationwide employee retirement preparedness report, the article says that Millennials’ retirement preparedness level actually went down from last year. This is unusual, as people generally get more prepared for retirement as they move closer to retirement age. The Millennials’ belief in the seven retirement myths, in addition to the expected reduction in Social Security and Medicare benefits, could result in a retirement disaster or, as the article calls it, a “lost generation.”
However, Millennials seem to be aware of their retirement incompetence. In fact, the article says only 17 percent of the generation feels confident that they are on track for retirement.
Chris Hobart, CEO of Charlotte retirement planning company Hobart Financial Group, says it’s never too early to start saving for retirement. “Millenials are most at risk for a rough retirement,” he says. “With federal funds draining out, it’s necessary to begin securing funds as soon as a person enters the workforce. Most Millenials are just starting their first jobs. While paying off student loans seem like the biggest priority, young workers should also be looking to put away some money for retirement. They should be taking the initiative and looking at what types of savings programs their employer has to offer, whether it’s a 401(k) or IRA. Not saving early could be detrimental to someone’s retirement future.”
Hobart also says Millenials should be more active in how their funds are managed. “Most employer provided plans have extremely low rates,” he says. “With rates around 5 percent, it will be hard for someone to save money, even after working for 50+ years. Look into what plans your employer provides and seek advice from a retirement expert. They can guide you in making smart investment decisions that will help you ensure a more comfortable future.”
Hobart Financial Group is an independent North Carolina financial advisory firm dedicated to personalizing service with uncompromising integrity. Its focus on comprehensive, tax-advantaged plans help to provide sound preservation of capital, growing income and increased returns with reduced risk. Chris Hobart, founder of Hobart Financial Group, understands that true wealth means being able to share your life with the people you love, free from financial anxiety. Hobart Financial helps Carolinas’ retirees preserve and protect their wealth with comprehensive financial retirement planning and wealth management.