Whether retirement is just around the corner, or a lifetime away, you should already be planning. If you’re in your 50s, then it’s probably at the forefront of your mind. You might be saving madly and making big plans. For the younger ones among us, it probably hasn’t even crossed your mind yet. Rest assured, no matter how young you are, it pays to think about the future. Your twenties are the best time to start thinking about retirement, trust us.
Speak to anyone in their middle age, or elderly years, and they’ll tell you they wished they’d started earlier. The later you leave the saving and retirement process, the more of a strain it is on your finances. Start earlier and you can save less, invest less and see much bigger returns. At the very least, start doing some research, start thinking about it. With the population aging at the rate it is, a state pension isn’t set in stone for the future. You need to rely on yourself.
This is as simple as setting aside a small amount every single month. The younger you are, the less you need to put aside. We know it can be difficult in your twenties. Starting salaries aren’t big. You’re still paying off student loans and scraping together to pay rent. Try to put a very small amount into a high interest savings account every month. Remember, you’ve still got 40 years or so ahead before retirement. That small amount of money will grow large over time.
Take advantage of company pensions and 401(K)
If your company runs a pension scheme, take advantage by putting as much as possible in it. In a lot of cases, your company will match your contributions. This is an easy way to double your savings quickly. Put the highest percentage you can afford into the pension scheme for the best returns. The best thing about this is that the money never reaches your current account. It’s gone before you have to budget it.
Invest in stocks
Many are scared off by the stock market. We’ve all heard of the terror of stock market crashes. We know that day trading can be risky and we could lose all of our money. These are all just scare stories. Let’s be clear, trading stocks can be dangerous and risky. However, playing the long game is a safe and savvy investment. On average, the stock market increases by over 10% every year. Put your money in strong, stable stock and you’ll see a large growth over time. Of course, there will be dips and downturns. But, if you’re playing the long game, you’ll ride these out and benefit from the big bumps.
Plan for the future
In general, just take some time to plan for the future. What do you want to achieve? When would you like to retire? Would you like a big family? All of these considerations will affect your retirement fund. Don’t be afraid to look to the future. It gives you clarity and direction. Visit a will solicitors London and put your affairs in order as soon as you have savings. Speak to your family about pensions and savings. They will have some savvy advice.
It’s never too early to start thinking about the future. Putting money aside is a crucial practice, and one that will pay off as you grow older.