Planning for retirement is an important step in securing your financial future. Many people ask when is the best time to start planning for retirement. Regardless of your age, plan to accomplish the first step. Take a look at the following key points on planning for retirement. The experts at Care Financial are here to help with retirement calculators, portfolio reviews and more to help you retire with the lifestyle you desire.
Here are 5 Points on When You Should Start Planning for Retirement
Compounding interest is a powerful financial ally. Begin planning for retirement as early as you can so you can harness it. For example, if you begin investing in your company’s retirement plan with your first job out of college you can almost double your return by retirement age. Even better, begin saving for retirement with your first part-time job.
If Not Early, As Soon as You Can
Even if you were not able to start saving for retirement as early as you would have preferred, start saving today. Whether you are 30, 40, 50 or beyond, if you run the numbers and feel your retirement income will fall short of what you need, then start saving today. Many individuals find themselves working part-time or full-time well beyond traditional retirement age. If this is you, don’t let that number dissuade you from saving for your retirement years.
Sometimes, circumstances call for a break in retirement savings efforts. For example, a layoff that has you counting pennies and sending resumes. Breaks like this are understandable. The important part is not to let a break last too long. As soon as you can, begin a regular retirement deduction with your new employer. Long breaks in your retirement savings are dangerous since they make getting back into the savings habit even harder.
Many stay-at-home parents go a decade or more without a steady, significant income being earned through a career. What you may find is that eventually, you return to work full-time. Get educated on your company’s retirement benefits and start contributing right away.
Marital Status Changes
Like returning to the workforce, a change in marital status may signal time to start planning for retirement. As stated above, if you find yourself returning to work after divorce, take action to protect your own retirement future. Start saving for retirement within the first 90 days of employment so that this task is done. Likewise, perhaps you become a widow and must return to work full-time. If you find your nest egg to fall short, begin saving for retirement as soon as possible regardless of your age. Finally, scenarios in which marriage brings two full-time incomes together are another good reason to start saving for retirement. Now that you’re a couple you may retire that way, too. Recalculate your projected income needs, begin saving and gain the confidence you need to retire with ease.
Care Financial is a privately owned and operated business providing families, individuals and businesses with comprehensive wealth management strategies. Contact us online at www.carefinancialonline.com or call us at 251-633-7122.