, its much better to plan it as early as possible. Many people start to work at the age of 16 or 18. However, at such young age, we dont think about planning a retirement. It seems unusual for someone to plan or save for it at an early age. Regardless of age, planning your retirement is crucial and its not too early to begin it.
Save money for retirement
Those individuals that do not prepare for their retirement while working find it hard to survive without job. They tend to look for another work even if they are retired just to meet their needs.
Common sources of retirement income
Social Security
Employer-sponsored retirement plans
Personal savings and retirement investments
Its crucial to keep money while working to secure an income for your retirement. The first two sources of retirement income may need more money than what they can offer. The earlier you plan your retirement, the better your life will be.
Social Security benefits
It pays the regular individual about 40% of his pre-retirement salaries. But this wont be enough for many people.
Employer-sponsored plans
In case, your company manager offers a retirement plan, then first you have to find out what benefits you could get. If you are going to change your work, observe what happens to your retirement funds and verify with your earlier jobs to see the benefits you had from it.
Tips in planning your retirement
First thing that you should do is to open a retirement account. Put a definite percentage of your salaries in it every time you are paid. Your money will then earn an interest over a period of time and you can increase your earning stream for retirement.
Decide how much you will put into your account each month. And make sure you wont spend your savings because you might lose tax benefits.
Remember that retirement planning is an essential step to have a stable income after retirement.