Even if you just got your first job the other day, it’s advisable that you start planning for your retirement right away. Right now you might feel like you have all the time to save for your retirement. This is further from the truth. Time actually never stops. If you start planning for your retirement now, you will be able to do things without having to rush. Lest you forget, the life you will live after retirement will be determined by what you did with your money when you were still young. When you are young, you can survive with peanuts. You should therefore take advantage of your youthfulness to build a good fallback position for your sunset years.
Below are some reasons why you should start planning for your retirement early.
1. You Won’t Work Forever
You might think that you can work until you breathe your last. But that’s certainly not possible because age will eventually catch up with you. As your body ages, your productivity will definitely go down and your employer will have to replace you with fresh blood. Even if you are self employed, a time will come when you will not be able to work anymore. Preparing for retirement in advance will give you a soft landing when such situations come calling. It’s disgusting to be old and not have something to show for the years you spent toiling.
2. There will be Bills after Retirement
Although you may not have any kids that will still be depending on you by the age of retirement, you still have to pay bills like everyone else. This is perhaps the most bitter pill to swallow. But it’s the truth. And you won’t be shown any mercy because of your age. As a matter of fact, your health is bound to take a nose dive as you age. You will therefore need to have money to cater for your medical expenses. Besides that, you will still need to pay for your water and electricity.
3. You can Lose Your Job Anytime
Many people expect to continue working until they are old enough to retire. However, it’s only a chosen few that enjoy such a privilege. Unbearable circumstances can leave you without a job. If you are involved in an accident that leaves you with severe injuries, you might have to quit your job. You can also lose your job if your company is bought by another company. Moreover, your employer might wake up one day and decide to retrench some employees. Planning for such unforeseen situations can help you survive on a rainy day.
If you start to save for retirement at the onset of your career, it’s obvious that you will have accumulated a lot of money by the age of 65. If you choose to wait until you turn 40 or 50, you will only save a small amount because time will not be on your side. Planning for retirement early therefore gives you an edge against time. Besides that, you don’t know how many years are left before you go to meet your maker.
5. Enjoy Tax Exemptions
Depending on the retirement plan that you choose, the government is under obligation not to tax your retirement savings until the maturity date is reached. This is an added advantage because it makes it easier to grow your retirement savings. In addition to that, you can invest in diversify your investment so that your savings continue to generate more income. For instance, you can invest in unit trusts, government bonds and stocks among other options. If you are still not sure where you want to invest your retirement savings, you should consult reliable financial advisors such as AFHWM.
The time to retire can come sooner than we expect. It pays to be ready long before it comes knocking at our doors.