Should I invest in a Roth IRA or is retirement just for the wealthy?

Products and services have been getting more expensive for years, and wages haven’t kept up. Although the affordability crisis can leave many people feeling discouraged, it’s still important to have good money habits.

That’s why a recent Reddit post in the Personal Finance community generated quite a stir. An 18-year-old asked if it even made sense to invest in a Roth IRA. The individual believes retirement is just for the wealthy, but many commenters were quick to correct the original poster.

Imagine You Are 80 Years Old

The top commenter asked the 18-year-old to imagine how life would be different if they were 80 years old instead. You can get away with not saving money at 18, but you will punish yourself massively by the time you turn 80.

Most 80-year-olds don’t have as many career options as 18-year-olds. Their bodies can’t do the same work they did in the past, and people gradually lose energy as they get older. It takes more effort to maintain current levels of fitness and cognitive strength as you get older.

Having a nest egg becomes more important when you get older. However, you have to build up your nest egg when you are young. A Roth IRA is a great resource that allows you to save money on taxes as you build up your retirement savings.

Some People Work Until They Die

Retirement may not feel necessary for someone who thinks they will work forever. On one hand, the rising cost of living has made it more difficult for anyone to retire. However, other people continue to work well into their 70s and 80s because work gives them a sense of purpose. Many people who retire aren’t sure what to do with themselves when that moment arrives, and the initial honeymoon phase ends.

However, there is also a chance that you can no longer physically work. You may get a workplace injury, get into an accident, or endure another event that makes it impossible for you to work as you did beforehand. Any of those scenarios can result in a forced retirement, and your nest egg will determine how easy or difficult those years are from a financial perspective.

You also don’t know if your spouse or another person you care about will need a big emergency expense, such as medical bills. Saving money for retirement can also help out on a rainy day if you never plan on retiring.

Relying On Family Or Becoming Homeless

One commenter painted a painful picture by describing how someone who is in their 60s or 70s will either rely on family or become homeless if they haven’t built a nest egg. This comment hit home with a Redditor who explained that their 76-year-old aunt has to keep working to avoid becoming homeless. The family has offered to let the aunt live with them, but she wants to stay in her current home.

While it takes plenty of sacrifices to save money for retirement, the end result can be quite dire if you never make the effort to build up your savings.

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