Why should you start saving for retirement as early as possible?

The time to start saving for retirement is a dilemma that everyone faces in life. You may think it is wise to start as soon as you begin your first job. Others may think they should start about 10 years after their marriage. While there are no hard and fast rules, the best time to start is to save for retirement as early as possible.

The time after entering your first job is ideally the right time. You may be struggling with a low salary and could have exposed your thoughts on retirement plans as retirement is still more than 30 years away. You may have a loan to repay and you may be staying in a rented home. However, none of these should discourage you from saving small amounts for your retirement plans.

Why you should start saving early
There are important and critical reasons why you should not postpone your retirement savings plans. Here are some of the reasons:

• Delay will be costly

The sooner you start saving for your retirement, the better for you your whole life. Any delay increases the amount you have to dispense for each month as premiums.

• Smaller amount in pension savings

If you start saving late, you may have a smaller amount in your total retirement savings compared to what you want if you had started early. You will then not be able to maintain the same kind of lifestyle you had in the past.

• Best annuity

You will receive better annuity from your pension if you start saving early in life. If you start too late, the returns you get may be less.

• Retire early

In the event that you are considering early retirement by going into a VRS etc, you will have a great advantage of having saved early for retirement.

• Compound money

The sooner you start saving more will be the interest you earn on your savings. You will earn compound interest and you will lose what you earn by investing late.
Things to take care of

There are various things to look out for 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 retirement plans.

• Start as early as possible in life, preferably with your first job.

• Set aside a regular sum from your monthly income to your retirement portfolio. Do this even if you have to forgo some comforts in your life.

• Your portfolio should have components sufficient to meet all of your retirement needs.

• You can find better businesses and policies by advocating for an online retirement plan. You can thus compare and get the best pension plan.

• Review the portfolio regularly to ensure that your investment is on track.

Since building your retirement corpus is a long-term goal, the earlier you start, the better. The later you start the more will be the investment you will have to make. Therefore, invest early, regularly and intelligently to build your retirement portfolio and have a peaceful life.