You never too young for retirement planning (Finances)
As people we work to make money and live comfortably and we make plans so that even in our old age we retire comfortably.
According to The Transamerica Center for Retirement Studies 70% of America’s millennials began saving for retirement at age 22 through an employer sponsored plan. Therefore it’s never too early to start saving for your retirement and here is why.
Lack of knowledge, financial pressures; the instant gratification culture and need to live in the moment can make retirement planning not a priority for young people. And each month that you put off saving in favour of spending will increase the amount that’ll you’ll have to save or push out the date that you will be able to retire comfortably.
But the youth shouldn’t take all the slack as the current economy of high unemployment rates also makes it so that most youth aren’t always in a position to put away as much as they’ll need to when they start working.
And where does that leave them in the long run either relying on family or meagre old age grant from government well it doesn’t have to be that way, here’s what you can do.
If you’re self-employed
It’s up to you to invest in your own personal retirement package with the assistance of an independent fee based certified financial planner.
How much you need to save
That’ll depend on your current age, how much you earn, and current budget of home or car, which will they be paid off as you retire also consider medical expenses, which are likely to start increasing as you age.
Once you clear on how much income you’ll need
You can start planning the age at which you wish to retire and the lifestyle plans you have for retirement.
The rule is…
You should be saving 15% of your gross salary from your twenties.
Always try preserving your retirement savings
When you change jobs, the worst thing you can do is cash your savings in, making it harder for you to save in the long run.