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Young workers just starting out with their careers should remember that decisions made now compound over time, including the accumulation of debt and retirement savings, writes Mary Beth Franklin for Investment News.
“If you’re in your twenties or thirties, every financial action you take — from racking up debt to saving for retirement — compounds over time,” she told a gathering of Capitol Hill staffers during National Retirement Planning Week.
“By taking a few simple steps now, it could add up to big bucks later.”
The young workers she addressed “are lucky” as they are part of the federal Thrift Savings Plan, “known for its menu of extremely low-cost proprietary index and target-date funds, and automatic” enrolment starting at three per cent of salary.
A good start but not enough to build a secure retirement, she continued. Millennials in general have access to workplace retirement schemes, but only half of those eligible participate.
More: Data comes from National Institute on Retirement Security (NIRS).

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