The year is 2051.
After a long career, you are ready to retire.
Too bad you didn't think about that back in 2011 when you were just 25 years old, but maybe it's not too late.
There are lots of things on the minds of twenty-somethings, but retirement is probably not on the horizon.
"For many young adults, saving for retirement is really not a priority. They're more concerned about what's happening today. But really it's a balance between your current obligations and saving for your future," said Diane Chong, of VP of Central Pacific Bank.
How much should you be putting aside for retirement? Chong says there are a couple of things you need to do first. "The first thing is that they should draw up a budget and the reason is, you need to know how much money you have coming in and where that money is going and then you can pretty much sit down and say where you can cut back on certain things."
Chong is the first to admit that it may not be the easiest thing in the world for young people to begin setting money aside, especially since they may have just started earning money. "They're saddled with student loans that are thousands of dollars and on top of that, they're accepting a lot of credit cards so the worst thing to do is not manage your debt properly."
If your employer offers a 401k, Chong says jump on it. "They take the money out before you even see it, before you even have a chance to spend it, they have tax deductions and many plans and employers will match your contributions."
If your company does not offer a 401k or other retirement plan, Chong suggests setting up your own traditional IRA or Roth IRA is the next best thing. The other thing to remember is that the year 2051 will be much different that the year 2011. "People are now spending certain amount for a car where our parents spent that certain amount to buy a house. So things definitely go up in price and inflation is something you need to consider when you're saving for retirement."
