How And Why To Start Saving For Retirement Now

Think you have enough time to save for retirement later? Neeti Jaychander dispels that myth and shows you how and why to start now.

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Your first paycheck is meant for buying those shoes you’ve been lusting over, endless parties on weekends, and new clothes for that perfect #OOTD post on Instagram. Who thinks of retirement when they have just about started earning, right? We hate to be a buzzkill, but according to experts, everyone should. True, time is on your side, but that’s exactly why you should start ASAP. Retirement doesn’t necessarily have to bring up a picture of you in your 60s, tired and wary of the job you’ve had for years. Want to start a pet café or buy a cottage in the hills in 20 years? Guess what, if you plan for your retirement right now, you can turn all these forlorn dreams into reality. To be financially secure and pursue your dreams (YOLO, after all) you need to start saving early. Adulting is hard but with these financial tips in tow, you’ll be living your #bestlife sooner than you think.

Age advantage

The best time to start planning for your retirement is in your 20s. Pune-based personal finance strategist and founder of Money Plant Consultancy, Rishabh Parakh, says it’s because this is the age you are unlikely to have any financial obligations or dependents to take care of. Basically, that leaves you with more money for your savings. “In your 30s, you need to plan for domestic budgets and school fees for kids (if you have any), EMIs towards loans, etc,” he says. An early start also means a decade’s headstart on saving, and more time for the money to grow itself. Remember the famous childhood moral about slow and steady winning the race? It applies to financial planning too. The later you start, the more you’ll need to invest to reach your retirement goal.