Norman Vincent Peale, the American minister and author once said, “Live your life and forget your age.” Wouldn’t it be really wonderful to be able to live your life the way you want to live it, without having to bother about your age? More often than not, life seems to slacken in pace post-retirement. This is the time when an individual should be able to sit back and enjoy life. But often due to the lack of adequate retirement fund, the post-retirement phase brings with it a lot of worries and tensions. If you want to lead a stress-free life after retirement, you should start planning and saving for it properly. This article provides you information about why and when you should start saving for your retirement.
Reasons to save for your retirement
Financial independence is important in all phases of life, including your retirement. Some of the top reasons to start saving for your retirement are as follows:
To spend your post-retirement life as you wish
The way you spend your retirement life will depend on the amount of money you have invested or saved for your retirement. Whether it is about fulfilling your post-retirement dreams or your basic needs like food, clothing, and other usual expenses, you will need money for everything.
To meet your medical expenses
Medical expenses can be a big issue to deal with, especially in your old age. It is a known fact that the threat of medical conditions increases with growing age. If you are not well-prepared financially, you can land yourself in trouble as health-care is becoming expensive by the day.
To avoid continuing to work after retirement
There is a big difference between working for the pleasure of it and working under compulsion. If you do not want to spend your retirement years working under compulsion so that you will be able to pay your bills, you should start saving for your retirement suitably.
To avoid being dependent on anyone
If you do not want to depend on anyone for your post-retirement expenses, you have to plan accordingly. Be aware that your social security benefits may not be enough to fulfill all your retirement living expenses. Hence, saving for your retirement is the only way to navigate through your retirement years smoothly.
When should you start saving for your retirement?
The earlier you start saving for your retirement, the better. Ideally, you should start saving for your retirement in your youth itself. Make sure to plan for your retirement in such a way so as to get tax advantages. Certain powerful savings vehicles, such as RRSP enables you to save for your retirement while providing you tax benefits. You can start building your retirement fund with their help and remain prepared for a stress-free retirement life.