Retiring In Your 20`s

rt2Its after graduation and you hold your degree happily in your hands. So what next? Getting a job of-course. You may or may not tarmac for long before landing on some job to begin with; which mostly is not your dream job.

Expenses start mounting and your lifestyle changes without a thought of how you will live when that job ends. Most importantly but what many forget is planning for their retirement.

Young, healthy and aggressive, most young employees in their twenties never get struck in their minds by the fact that some day they shall be old; without jobs, but needing money for their up-keep. It therefore begs the question, “how do you plan for your retirement even at that very young age though retirement may seem thousands of miles away?”

Starting early has never been a disappointment. Yes you may have your bills to pay, fun to have with your friends, new accessories to acquire to roll with the fashions and trends of the young and vibrant, but still old age is a reality that you can`t afford to ignore. The point is, start planning for it early enough and it will be a lot easier and cheaper for you in the later years.

Putting aside some savings for your old age from your early twenties may sound crazy, but the little you save today will never be equal with the much you can save later. It`s the power of compounding interest for the savings and the investments you put the savings in that makes the difference.

Saving and investing 5000/= per year from your twenties will always earn you more at age 65 than saving 20,000/= per year from the age of 50 – that is assuming the interest rates are the same.

Simply put, start saving early for your retirement. Once you get your first job, it`s time to start thinking of when you shall be leaving the job market and retire to your humble old-age-home. Start a savings plan for your retirement, invest the savings in long-term investments with good returns and smile as you await your retirement without financial worries.

Most employers register their employees with the National Srtocial Security Fund (NSSF)  which is a pension plan for the employees. You too can contribute towards the NSSF, to supplement your other retirement savings and investments.

The point is, start planning for your retirement in your twenties, pay less to retirement savings schemes and pension schemes annually, but get more when you finally retire.

It`s time to start packing for retirement at your 20`s.


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