Friday, February 3, 2012

Older Workers Spend Less and Save More

English: A photo of a cup of coffee. Esperanto...Image via WikipediaIsn't it great when something you know is true is proved in a survey. On AARP.org there is a great article about how older workers spend less on lunches and coffee than their younger co-workers. Older workers not only spend less money on lunches but they spend a lot less.

The survey taken by recruiting and staffing firm Accounting Principles shows younger workers ages 18 - 34 spend almost twice as much on coffee than workers 45 years and older. According to the Workonomix Survey, they also spend about 40 percent more on lunches. Even though older workers are earning more money they actually spend less than their younger coworkers.

The average U.S. employee spends nearly $3,000 a year on coffee and lunches at their job. This statistic should be an eye opener to what's going on in your daily spending. Even if you just cut that number in half you would have so much more money to save toward your retirement fund.

If you are starting now in your 50's and 60's to save $3,000, at the end of ten years you would end up with a tidy sum in your IRA. Using the AARP lunch saving calculator at the end of 10 years with an 8 percent rate of return you would have $12,690. The big payoff goes to the younger worker who starts to save this way now. 

Try AARP's lunch savings calculator to see how much you could save by bringing your lunch from home.

Check out: Study: Older Workers Spend Less. And You? at AARP.org

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