For the majority of people, their 20s is a brilliant carefree time in their life. Whether you have just moved into your first home, been offered your dream job or you got married and started a family, you can guarantee that the last thing on your mind will be retirement. With the state pension age continually rising, you probably feel as though retirement is a lifetime away so it is pointless even thinking about it now.
However, it really is never too early to start planning for your retirement and your future financial security. Many would say that you should start retirement planning the day you get your first payslip and therefore, your 20s is usually the best time to put a plan in place. If you’re wondering why you should be this prepared, keep reading today. Our team here at Financial Investing and Trading have put together a list of benefits of planning for retirement in your 20s.
The sooner you start the more you can save
The most obvious benefits of starting to plan for your retirement in your 20s is that you will be putting money away for many decades. Simply put, the longer you’re saving for, the bigger your pot of money will be when you actually end up retiring. Whilst this may seem like an unnecessarily long time to save for, the amount that you’re able to save will make it well worth it.
You can put less away monthly
When you’re in your 20s you may be paying off your student loan or saving for a house and you may feel as though your income is already being stretched without saving for retirement too. However, as you go through life, you will always have outgoings, that’s just the way it is and you can’t use this as an excuse. In fact, the sooner you start retirement planning the less you will have to put away and the less it will impact your finances.
You will have lots of options to choose from
When you start saving many years in advance, you will have lots of different options for how to save or even invest your money wisely. Instead of simply using a standard savings account that doesn’t provide much interest, you can explore different options that will help you to make the most of your money. You will have plenty of time to turn your savings into future financial security.
The future is so unpredictable
Ultimately, no one knows what is going to happen in the future and even if you’re paying into a government pension you shouldn’t solely rely on this. It goes without saying that it is best to take control and save for your own financial future alongside any of your pensions. When doing this from a young age, you won’t need to worry about the uncertainty of the future and you can trust that when you reach retirement age, you will be financially ready.
Investing in your retirement now
All in all, it is clear to see that starting to plan for your retirement in your 20s is a brilliant idea and the benefits are undeniable. You can guarantee that you will thank yourself in the long run for taking the time to start retirement planning at a young age. Don’t worry if you’re in your 30s or your 40s, there are still things you can start doing now that will go on to benefit you when you’re able to retire.
If you would like to find out more about retirement planning, please visit the Financial Investing and Trading website today. We have the perfect online course for you to take when looking to find out more about the best way to invest for your future. Of course, if you have any questions at all about this course or retirement planning in general, please don’t hesitate to get in touch, we will happily assist you further.