If your employer offers a retirement plan, join it as soon as you can and contribute as much as the plan allows. People tend to distrust the stock and mutual funds during bad economical times. But the best time to invest is in bad economy and when the stocks are low. Even in a time like this, most employers offer 401(k) plans and match a fixed percentage of the employee’s contribution.
The most common match is 50 percent of the employee’s contribution up to a maximum percentage of wages or salary (usually 6 percent). Although many companies are cutting back on the matching, you can still expect the find somewhere between 2-4 percent. That’s like getting free money! Although most temp and part-time employees do not get matching 401K, but if your job does, then join without hesitation.
The younger you are, the better your long term savings returns. Your savings will grow and your earnings will compound over time. Time is the best and most important factor in retirement savings. If you wait until 35 to start, then you’ve already lost 12-13 years of compounding opportunities. If you just recently graduated from college and luck enough to have a job, start now. Even just little amount each month.
Source: U.S. Department of Labor