The time when one should start saving for retirement is a dilemma everyone faces in life. You might think that it is wise to start as soon as you begin with your first job. Others may think that they must start around 10 years after their marriage. Though there are no hard and fast rules, the best time to start saving for retirement is as early as possible.
The time after you enter your first job is ideally the right time. You might be struggling with a low salary and could have postponed the thoughts of retirement plans, as retirement is still more than 30 years away. You may be having loans to repay and might be staying in a rented accommodation. However, none of these should deter you from saving small amounts for your retirement plans. Why You Should Start Saving Early
There are important and critical reasons you must not delay your retirement savings plans. Here are some of the reasons:Delay will be costly
The earlier you start saving for your retirement the better for you throughout your life. Any delay will increase the amount you will have to dispense with every month as premiums. Lesser amount in retirement savings
If you start saving late, you may have lesser amount in your overall retirement savings compared with what you will have in case you had started early. You will then not be able to maintain the same kind of lifestyle you had earlier.Best Annuity rates
You will receive better annuity rates from your retirement Policy
if you start saving early in life. If you start late, the returns you get could be lesser.Retire Early
In case you are thinking of retiring early by going in for a VRS etc., you will benefit a great deal by having saved early for retirement. Compounded money
The earlier you start saving more will be the interest you will earn on your savings. You will earn compound interest and you will thus be losing out on what you will earn by investing late.Things to Take Care
There are various things you must take care of when you start saving early for retirement. The following guidelines will help you with this:
The first step is to calculate the amount you want in your Pension
Start as early as possible in life, preferably with your first job.
Set aside a regular sum from your monthly income for your retirement portfolio-Do this even if you have to forgo some comforts in your life.
Your portfolio must have components sufficient enough to cover all your retirement needs.
You can find better companies and policies by going in for an online retirement plan-You can thus compare and get the best pension plan
Review the portfolio regularly to ensure your investment is on track.
Since building your retirement income corpus is a long-term goal, the earlier you start the better it is. The later you start more will be the investment you will have to make. Therefore, invest early, regularly and intelligently to build up your retirement portfolio and have a peaceful life.