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New college graduates need to start saving right away

(KOMO file photo)

Whether by choice or necessity, Americans have been staying in the workforce longer. For the past 20 years or so, changes in Social Security benefits and the overall economy have forced or encouraged people to retire later.

Graduates of the Class of 2018 may have to delay retirement even longer, according to a new report from NerdWallet. The report concludes that this year’s college graduates

could “comfortably retire” by the age of 72, with careful budgeting and relatively modest retirement savings.

"The most important thing to do is to save as early as possible because you can save less at a younger age and have more money later on thanks to compounding returns when your money is invested,” said Brianna McGurran, personal finance expert at NerdWallet.

McGurran says graduates who are just entering the job market should save in their employer's 401(k) plan as soon as they are eligible.

“And they should definitely save at least up to the match that their employer offers,” she said. “Some employers give you 3 percent of your salary towards your retirement account, if you put in three percent. Make sure you put in that 3 percent. Don't give up on that free money."

More Info: Class of 2018 Money Outlook

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