Planning For Retirement, When Do You Start ?

In your 20’s







The best time to start planning and saving for your retirement is as soon as you start working. When you’re in your 20’s, retirement may seem like a long time away. However, the earlier you start the better. People in their twenties usually have less financial commitments and can afford to save more at this stage of their lives. You can also afford to take more risk with your investment choices, as you have the benefit of time on your side.

By starting to save for retirement in twenties, you will enjoy the full benefits of compound interest, as you will earn interest – on interest for the longest, possible period

In your 30’s

If you’ve reached your thirties, and you haven’t started saving for retirement yet, then don’t delay any longer. It’s also important to assess any retirement provisions, which you have made so far, to ensure that you are saving enough to reach your retirement goals.

People in their thirties generally have ,one financial commitments, such as bigger mortgage, children or greater insurance needs. As a result, you may be tempted to reduce your retirement savings or to stop making contributions entirely. However it would be a mistake to do this. Your long – term financial plans shouldn’t suffer, because of other commitments.

You may also decide to change jobs at this stage. If you do so, don’t be tempted to spend any retirement savings. It is very important to preserve these funds. Otherwise you have to start from scratch. If you haven’t saved anything for retirement so far , and you have about 30 years left before you retire, then you should be saving 18% – 22% of your income

In your 40’s 

This is where life become more challenging. You’re now married, have one, two, three school going children.  Your life at this stage, is becoming more & more demanding. One or two of your children are now at senior secondary school. Panic sits in, you’re not show whether you will have money to finance their further education. If you had made some investment savings, you can breath, but if your monthly income could not allow you to save, you’re in trouble.

There’s only one option, looking for a bank loan, God knows how you’ll repay it. Make sure that your employer has adjusted your salary to cater for this situation. At this stage your household financial demands are skyrocketing, you need to adjust your monthly financial commitments.

One way to adjust it, is to scale down your expenditure, stop eating out, prepare food at home, reduce/discard leisure expenditure.

The whole idea is to plan for your retirement. You should not retire a poor man, try to prepare yourself for a peaceful, financial sound retirement age.

Final thought

Some say but this topic is for old timers. I don’t agree. It’s for anyone who has attained the age of 20 and above. You may be young but the bottom line, you’re growing older. Who’ ll take care of you at 60 or 70 years of age. One may rely on their children, unfortunately they have their own family/financial responsibilities. Therefore retirement planning is very important


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