How early is too early for Retirement Planning?
Financial planning for retirement is essential in allowing you to enjoy the rest that you deserve after a long career. Planning also ensures that you will be able to meet the costs of your basic needs and unplanned expenses. Knowing when to start financial planning can be difficult. Before you have even started planning for retirement you might be thinking about how to buy a house, a new vehicle, or save for a family vacation. The fact is that retirement planning is more important than almost any other type of financial planning, so when it comes to at least exploring your options, there’s no better time than now.
In South Africa we have the old age pension available for citizens who meet certain requirements, and also boast one of the highest figures of company subsidized retirement funds. Even if you take both of these retirement plans in to account, do you think that they will allow for the quality of life you want to live when you retire?
Retiring means relaxing and enjoying some of the things that you couldn’t while you were working. If you want to travel, spend time with family, or take up hobbies that you didn’t previously have the time for then planning early for retirement is essential.
There are a number of ways that individuals can plan early for retirement, and starting a savings fund early is the easiest. Term deposit savings accounts where interest rates range from 3% to 7% may seem to have a low return now, but they can provide a valuable fund for investment later on. Even if you start saving for retirement in your 20s, you could build a significant cash reserve by the time you are 40. You would then have the means to seriously consider investing in a retirement fund. Stock trading, property investment, or even precious metal investment are all feasible options when you reach mid age. These investments could provide additional income, dividends, or options for sale as you reach the age of retirement.
Whatever plans you have for retirement, thinking about this stage of your life as early as possible means that you will be prepared for any eventuality. Beginning a savings scheme early can allow for more investment opportunities in the future when you have more time to think seriously about retirement. Ultrafin is a leading financial advisor in South Africa that would be happy to talk to you about financial planning, savings options, and the best investments for retirement no matter which stage of your life you’re at.
Planning early for retirement means that when it’s time to relax you can truly do so, without the burden of financial struggle.