There is no doubt that for most of the elderly people, life certainly is a curse. According to sources, almost 65% of the elderly population above the age of 60 has no other way but to depend on a job for sustaining themselves. Even though they may have put in more than 35 to 40 years of hard work in their active years, when it is needed most, money and security eludes them. So, in this article we will try and find out ways and means to plan for retirement through some simple steps.
The secret to having a reasonably big purse when you are retired is to understand the importance of saving early. It is important to understand this principal, at an early age. Those who understand the importance of saving early are the people who stand to benefit, when it matters the most. Further, it is important for you to have a goal in front of you, as you start saving early. Without a goal, you will just be beating around the bush.
You should have the patience and foresight to sit with your spouse and work out your retirement needs, well in advance. This is something which may not strike many youngsters and in many cases, only those who have providence and good luck are the ones who understand it, early in their lives. It would wrong to assume that financial needs post-retirement mitigate. On the contrary, because of health and other challenges, it may in fact go up.
You must find out ways and means by which you can contribute to your employer’s retirement plans and that too, at a young age. It will certainly add up to a big purse, when you need it the most.
Retirement savings do not happen in a single day. They have to be planned in the long term. You can start with a small amount, when you are young and start increasing it, as you move along in your career. You should perhaps understand the importance of investment options. The monthly contributions should increase as a systematic process of investing will earn you handsome returns.
There is no doubt that the best age to increase your savings substantially would be between 30 and 40. You should understand the power of reinvesting your savings during this period which could bulge into a big and useful retirement kitty.
Sources:
http://www.dol.gov/ebsa/publications/10_ways_to_prepare.html
http://content.time.com/time/specials/packages/0,28757,1930805,00.html
Tammy Richards is a seasoned finance writer with over 15 years of experience in the industry. With a keen eye for detail and a passion for helping people make smart money decisions, Tammy has become a trusted voice in the world of personal finance. Holding an MBA and drawing from her extensive entrepreneurial background, she offers valuable insights and practical advice to her readers.
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