This post may contain affiliate links, allowing us to earn a commission on the products we would recommend to our families and closest friends. You can find more info on our Legal Stuff page.
If you’re in your 20s, 30s, or 40s, you may feel like your retirement is a lifetime away. It may be true that there are decades of working in wait, but we all know that time flies. If you’re wondering whether you should be thinking about saving for your retirement now, here are some steps to take.
Seek advice
There’s no doubt that making financial decisions can be challenging. Most of us don’t finish school or college with expansive knowledge about mortgages, savings plans, and pensions. If you have questions about financial products, you’re not sure where to put your money, or you don’t know anything about retirement planning, there’s no shame in seeking advice. Speak to financial advisors, read articles and blogs, talk to your peers, your parents, or colleagues and gather as much information as you can. Look for advisors that have expertise in relevant fields. If you’re a teacher, look for firms that have experience in retirement planning for teachers. If you’re self-employed or you run a business, speak to advisors who have the knowledge and skills to point you in the right direction. Once you know what kinds of financial products and plans are available, and you have an idea of the pros and cons, you can decide what to do next.
Consider your current financial situation
In an ideal world, all of us would be able to start saving for retirement long before we plan to finish work. In reality, most people cannot afford to make huge contributions to savings funds and pensions in their 20s and 30s. The cost of living is rising, and it’s increasingly difficult to save. Before you think about the future, take stock of your current financial situation. If you’re using credit cards, or you’re thinking about borrowing money, it’s not wise to try to save now. Use your wages and savings to cover monthly bills and pay off credit cards and loans that are costing you money in interest. If you are in a strong position to save, you can think about putting money aside or paying into a scheme, such as a 401k or non qualified annuities.
Set financial goals
We all want to be comfortable in our retirement, but it’s common to have goals and objectives you want to reach or accomplish before you retire. If you want to buy a house, travel the world, have children and put them through college, or renovate your home, for example, setting financial goals that relate to these milestones may be more important to you than making the maximum contribution to your retirement fund. It’s an excellent idea to try to combine long-term planning with hitting targets for the next 12 months or 5 years. You can do this by making the most of employee schemes while building up personal funds.
Many people are experiencing financial pressures at the moment. Saving for your retirement may seem like an impossible goal. If you feel overwhelmed, or you’re not sure how best to prepare for the future, it’s a great idea to seek expert advice and explore the options open to you. Focus on your financial situation now if you’re paying off debts or struggling to save and think carefully about your personal savings goals.
Comments (0)