If you are only in your twenties, you probably haven’t been thinking about retirement recently. You have at least forty more years of working life before you, so why planning your retirement right now?
Well, in actual fact, it’s a wise move to start thinking about retirement as early as possible. That’s because it’ll give you the best chance to save up as much money to live off once you stop working. But that’s not all you need to think of - there is actually a lot for you to organize before you retire and if you start doing so while you are young, you will have plenty of time to get everything ready.
So, what exactly should twenty-somethings be doing to prepare for their elder years? Here’s the best guide you’ll read about it.
Start A Pension
If you don’t already have a pension set up, you need to organize one right now. Sure, you will have the standard state pension to rely on when you do retire, but this doesn’t amount to a whole lot, and you will struggle to survive off it alone. If you are in full-time employment, then your employer will be responsible for paying into a work pension for you. However, for freelance and self-employed individuals, it is important that you set up a private pension as you won’t have the benefit of a pension from work.
As well as a pension, you should also think about setting up some investments. These are a better option than simply saving into a bank account due to the current poor interest rates. Plus, your money has the chance to make big returns when it is invested. There are various investments you can think about. For instance, you might want to purchase one of the properties at Crystal Lake to rent out. That way, you get a monthly income from the rent and can also sell the property once you retire. Alternatively, you can invest your cash into funds, stocks, and shares.
Think About Boosting Your Pension
There are ways that you can increase the value of your pension. This is especially useful if you started saving for a pension in your late twenties and the final amount isn’t projected to be as much as you had hoped. The first way you can boost your pension is to simply increase your monthly payments into it. However, this might not be possible if you are on a low wage. You could also set back the day on which you start to take your pension. Most pension providers will set this date around your 65th birthday, but you can always push this back a few years if you want so that you have the chance to pay more into it.
Just because retirement is far away, you shouldn’t simply ignore it. You will certainly reap the benefits the earlier you start thinking about it! And there is no better time to start planning your retirement than once you hit your twenties!