There’s no doubt that saving for retirement is one of your most important financial concerns. But when you are struggling with debt, finding a way to put money away for something that won’t be happening for years often takes a back seat. This leads to an age-old dilemma: should you pay off your debts before you worry about saving for retirement?
Financial advisors hear this question all the time, and there is no one-size-fits-all answer. When deciding whether you should focus on your debts or your retirement fund, ask yourself these questions. Your best course of action will depend on your individual financial situation, and you should reevaluate your situation periodically to make sure you’re still on track.
Here is some advice to consider about paying off debt or contributing to your retirement:
Deciding whether to pay off debt or save for retirement isn’t always easy. But you don’t necessarily have to. If you’re not in debt up to your ears, it is possible to do both at the same time.