When to Start Preparing for Retirement

Start preparing for your retirement immediately unless you want to be a financial burden on your loved ones.  Studies reveal that the majority of Americans are not prepared for retirement when the time arrives.  Moreover, statistics are showing that longevity is increasing as some seniors are outliving their savings.  Rising food and health care costs and inflation rates are going to leave you vulnerable to poverty unless you start preparing for your retirement on time.

The earlier you start saving for retirement the better off you will stand financially.  Start now if employed by taking advantage of your company’s 401k plan.  If you start preparing and investing into your retirement on time, you will be able to set off unexpected events in life such as losing your job or a medical emergency.

1. The earlier you start the better off you will be

Start now, design a plan, set goals and stick to them.  Make retirement savings a high priority.  The earlier you start saving for your retirement; the better off you will be as your money will have more time to grow.  If you start late you will have to invest more money in order to compensate for the loss.

2. Start now by taking advantage of your company’s 401k plan

The sooner you start investing money into your retirement fund, the more money you will manage to accrue regardless of the initial investment sum.  Take advantage of your company’s 401k plan as often times employers offering these plans will match the amount of your contributions.  This is your opportunity to start growing money for free and thus make the best of it.

3. Start planning for retirement at age 20

Life always has its way of bringing you unexpected surprises when you least expect it.  What if you lose your job or have a serious medical emergency in your family?  If you lose your job at age 50 and are no longer able to contribute to retirement, you will have significant amount of money accrued assuming you started saving early at age 20.  While if you started saving at age 30, you will have four times less money. Thus, it always pays off to start planning and saving for your retirement early.  There are of course those who believe that the age of 30 or 40 is best for preparing for retirement as this is the age when you are settled in life.