retirement can prove to be a very complex task, however, this does not have to
be the case. Many people are not making the necessary provisions for
retirement. When you start a new job or enter the workforce for the first time,
the last thing you think about is saving for retirement, however, you should
start saving for retirement as soon as possible, to ensure that you live
comfortably in your old age.
It does not
matter how far away you are from retirement, you should start saving and not
spend this money on other things. As a rule of thumb, it is recommended to save
15% of your gross income, over a period of 40 years, between the ages of 25 to
65. Remember, you will also need to develop a financial plan for major life
events – expected and unexpected. This could include anything from medical
needs to changing family dynamics.
about your financial future, it’s important that you make retirement planning a
top priority. Today, it’s even more important to start planning for retirement
early, as fewer employers are offering pensions and retirement savings. This
means that retirement is now more challenging than ever, as traditional pension
plans are becoming few and far between. Recently, the responsibility of saving
for retirement has shifted from the employer to the employee.
why it is important to start saving for retirement as early as possible is that
longer lifespans have led to people outliving their savings. For example, if
you live up to 78 years old, you will be in retirement for a long time. Longer
life expectancies also lead to more money spent on healthcare.
If you have not
started saving for retirement yet, it’s not too late. Make sure to work with
your financial advisor or a trusted financial professional to help you to set
out new savings goals so that you can get back on track. With the proper
preparation and planning, you can have a comfortable retirement.
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)