A financial goal is something you want to do with your money in a certain period of time. Goals can be short-term, like buying a car this year or taking a vacation next summer. Or goals can be long-term, like accumulating a large nest egg for retirement. Retirement is one of the most important goals for everyone. Why? Because as you grow older, you may neither want nor be able to work until the end of your life. The hope is that we save enough money so it’s possible to enjoy life and pursue other interests besides work when desired.

In Part 3 you learned that Social Security benefits are likely to provide you with a small amount of income after you retire. However, you’ll need additional savings for everyday expenses, such as housing, food, and medical costs—otherwise you won’t have a comfortable lifestyle as you grow older.

Though you have many years to go, saving enough for retirement generally takes decades to achieve. That’s why it’s critical that you begin saving for the future as early as possible. Financial success doesn’t happen overnight—so the earlier you start saving for retirement, the better.

Social Security is a group of benefits paid to eligible taxpayers who are retired, disabled, or who survive a relative who was receiving benefits. The funds for Social Security come from taxes withheld from your paycheck. The amount you’ll receive in retirement depends on how many years you work, how much payroll or self-employment tax you pay during your career, the age you elect to start receiving benefits, and the future financial health of the Social Security system. Visit ssa.gov for more information.