Kentucky Higher Education Assistance Authority
February Money Tip for Students
Although you’re still in school, you need to think about how you will support yourself after you retire, even though that is many years away. In fact, the further away it is, the better off you may be, according to the Kentucky Higher Education Assistance Authority (KHEAA).
For decades, U.S. citizens have depended on Social Security for a considerable part of their retirement income. However, the federal budget crisis has forced Congress to look at cutting back on Social Security benefits for younger workers.
Another source of retirement income for many people has been pensions. However, many companies are scaling back or ending their pension plans.
When it comes to retirement, you should hope for the best but prepare for the worst.
Every time you get paid, set something aside for retirement. A little can go a long way. For example, if you save $100 per month for 40 years without drawing any interest, you will have saved $48,000. But if you can invest that money at 10 percent interest, you will have nearly $640,000 saved.
Develop and maintain a budget that includes saving as much as you can, then invest those savings wisely. When you begin your career, work with an investment professional to pick the plan that is best for you. Even if you don’t have Social Security or a pension upon retiring, you will still have something to help get you through your retirement years.
KHEAA is the state agency that administers Kentucky’s grant and scholarship programs, including the Kentucky Educational Excellence Scholarship (KEES).
To learn how to plan and prepare for higher education, go to www.gotocollege.ky.gov. For more information about Kentucky scholarships and grants, visit www.kheaa.com; write KHEAA, P.O. Box 798, Frankfort, KY 40602-0798; or call (800) 928-8926, ext. 6-7372.