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Colombo, 28 October 2019
Retirement planning is probably not high on your agenda when you are on your first job and enjoying the financial freedom it brings. To some, it’s not even on the agenda at age 40 as you juggle your monthly budget with mortgage, school fees, medical bills and perhaps supporting a sick parent. In fact, it can be harder to set aside a budget for your retirement plans at 40 than in your 20’s!
Experts say that the best time to get started is when you are young and have less commitments. It could be one of the most important decisions that you make to get ahead of your peers and approach your career and life with confidence.
Here are 6 other good reasons to start preparing for your retirement at an early age.
You might be able to retire early
If you start saving towards your retirement when young, you might even be able to retire early, depending on the type of retirement plan you choose, and how much interest you earn on your investments.
You won’t have to contribute as much over time
Unlike those who only started a retirement fund in their 50s and have to make enormous contributions each month, you can make small contributions for a longer period of time and end up in a better financial position.
You will be prepared to face the unexpected
As we grow older it’s inevitable that sudden expenses will arise. Illness is something that we have to be prepared for. Today, medical bills can be a significant drain on your savings, but a retirement plan would give you and your family the confidence to face such situations in the future with confidence.
You could retire rich
If you plan ahead and save wisely for your retirement, you could retire with a handsome fund which will give you confidence to face the future and not worry about finances in your retirement.
You’re making your money work for you
Rather than consistently slaving away at your job, trying to make ends meet while also trying to build a solid savings account, by saving small amounts from an early age those small contributions will continue to grow. As your get older you can even increase those contributions so that your fund grows at a faster rate.
Enjoy what you want to do when you have the time.
Retirement is a fantastic phase in your life if you plan well ahead. It gives you the time to take part in activities you never could during your career. It gives you the opportunity to travel and experience the world or to start a new hobby or even a small business that you truly enjoy being part of. But, whilst you have the time during your retirement for these activities, you will also need the finances and that’s why you should start planning and saving early.