What is the best age to start investing in a retirement plan? The answer is – while you are still young! Life is long and unpredictable, and you need to think about your retirement plan as early as you can. The best thing you can do for yourself and your family is to start investing when you are still young, healthy and able-bodied. However, most people do not start retirement planning early.
People start planning and investing at different life stages. At any age, they might choose a different kind of pension plan to suit their ever-changing requirements. One can begin their retirement planning at various life stages. Here are some of the life stages when you can begin your retirement planning:
- When you start a job:
Starting to build your retirement corpus when you start earning in your 20s is the best option. It gives you more time for your corpus to grow and compound with time. Moreover, if start your retirement fund at this age you will only have to put aside a small sum on a regular basis, without it burning a hole in your pocket. Most established organizations have 12% savings from the basic income that goes into the retirement fund. However, if your company does not have this facility, then it is ideal to choose an investment plan that puts aside 12% of your regular income into your retirement savings plan.
- When you are in your 30s:
The Mid-30s are an ideal time to reassess how much savings you have accumulated for your pension fund, and how much more you need to collect. You can do this by using a retirement planning calculator. Based on your assessment you may choose to invest in additional plans to invest in, or you can choose to continue with the same plan with some added funds. Your earnings are probably higher at this time compared to your 20s, therefore you can invest more during this phase.
- When you are in your 40s:
By the time you reach your 40s, you are comparatively stable in life and have a better clarity as to how you wish to lead the rest of your life. This is a time when you can actually, realistically think about your retirement and your future plans, taking into consideration yourself and your family. This gives you a better idea to find an ideal retirement plan with ideal retirement benefits, which will suit you the best.
- When you are in your 50s:
After you cross the age of 50, you just cannot take it lightly. You need to do some serious planning, as at this age healthcare and medical planning becomes crucial. Therefore, you need to find a pension plan along with your already existing investments, keeping in mind these future health and medical eventualities.
Of course, the earlier you start saving for your retirement in any instance, the better it is for you. However, you can still begin at any age and find the ideal pension plan for yourself, so that you and your family spend your golden years with calm and peace