According to the Federal Reserve Board, nearly a third (31%) of U.S. adults say they had no savings or pension to help them afford retirement and a quarter didn’t know how they would afford their golden years. Not only that, but according to a 2014 survey conducted by creditcards.com, one in five Americans believe they will die while still in debt.
Those are two very scary statistics. With that in mind, many are beginning to ask the question: “Is it more important to pay down debt, or save for retirement?” Just as with all other financial considerations, there is no one answer that’s right for everyone, but here are some factors to consider when making your decision.
A successful strategy will most likely include a mix of paying off debt and saving for retirement. Talking to a Financial Planner can help you sort through the options available to you to reduce debt and also prioritize retirement savings. But regardless of your choice, perhaps the most important decision you can make is to take action and get started now. The sooner you decide on a plan for both your debt and your need for retirement savings, the sooner you'll start to make progress toward achieving both.
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