“What the heck! Retirement is the word for those old people. I don’t need to worry about retirement at least at this phase of life”. This is the statement you are going to listen if you try talking about retirement to the majority of the cool dudes and divas of the young generation.
But, the fact is that the young generation needs to focus much more intently on their retirement plan as compared to the older generations. Here are some retirement lessons the young generation must learn.
You don’t need to have extra cash for saving for your retirement
The young generation is no doubt working very hard. Many of them are managing two jobs simultaneously. But, then also one of the most common excuses for not creating retirement fund is non-availability of extra cash. If you wait for the extra cash you are never going to have them even if your salary doubles overnight. The only way to have that extra cash is to take out a certain percentage of your income as saving before starting spending them.
The best time to start saving for retirement is now
If you start saving early for retirement you’ll reach the financial independence at an early age and that too very smoothly. The method of compound interest creates a drastic difference between saving from age 22 to saving from age 25. This is a very simple concept when you start saving early you earn more interest and live a more comfortable life after retirement.
You should save as per your retirement expectation not today’s mood
The half of the young generation who have started saving for retirement generally do not save an adequate amount. The retirement saving should be done according to a plan. You should have a clear picture of living standard you want to have after retiring. Financial experts can give you an exact calculation of the amount you need to start saving at your current age to reach your target retirement position. You can visit the site www.manningrushworth.co.uk and get expert opinions on the matter to plan a smooth retirement.
Sometimes you need to come out of apps and meet the real people
The younger generation is always seen with their nose on their screen. There are websites and apps giving all the information needed by us so we do not feel the need to come out of our mobile and laptop. But, there’s a great difference in theory and practicality. What we learn in apps or on websites are based solely on theories. So, don’t rely completely on apps for your financial planning. Get up from your couch and meet financial experts who can create a customized retirement plan for you based on your unique financial position.
Use technology to your advantage
This may superficially seem contradictory to the above-mentioned point but is actually not. We should use technology to our benefit as much as we can. You are lucky to be born in the time when you have the facility to automate your transactions. The previous generations have no options other than signing a cheque and mailing it on the monthly or quarterly basis. Automating your savings assures that you don’t get a chance to procrastinate and delay or skip your monthly share in your retirement fund. It also eliminates any chance of skipping the monthly saving payment by mistake. Get the assessment done by an expert, plan the amount and frequency of payment, schedule it and forget all the worries. After doing so you can focus entirely on your present life.
Understand that retirement is not all about finance
While talking about retirement we tend to focus only on one aspect i.e. finance. But, when you are thinking about retirement don’t only look at the financial aspect of retirement, saving to be precise. You should follow the rules of healthy living so that all your hard saved money does not drain in medical expenses during your old age. Stay healthy so that you can enjoy your saving rather than surviving on it. Retirement should not mean sitting idle in the corner of your house. As you enthusiastically plan your dating or honeymoon you should in the same manner plan your retirement. Whether you want to go on a world tour or start doing some charitable work for the society it is completely your choice, but, have a clear idea what are you going to do in those of your last decades?
Plan well in advance so that old age doesn’t come to you as a shock. Be prepared to welcome greys in your hair and wrinkles on your face with pride.