Have you ever stopped to think about how long your retirement may last? For some people, retirement can be as much as one third of their lives! That can be a daunting thought considering we need to prepare for retirement during our working years and hope we have saved enough.
Due to advanced technology in the healthcare field, it is much easier for many folks to live a lot longer than they might have anticipated. In order to prepare thoroughly, we must start saving for retirement as soon as possible.
Young people who most often have short-term savings goals on their mind such as buying a home or a vehicle, should not overlook the need to also save for their retirement. In fact, the sooner young people start to save, the less they will need to save overall due to the wonders of compound growth and interest.
I have spoken to many middle-aged individuals who are trying to play catch up and are contributing like mad into their RRSPs because they failed to plan ahead when they were younger. Although it is never too late to start saving, the sooner you start the better off you will be.
Don’t put off saving for retirement. Aging is an inevitable part of life and there will come a time that you will want to retire from your day job. Although you may never want to quit working altogether, chances are your body will eventually force you to stop working full time.
When I was about a week away from graduating from high school, I remember we had a guest come to our classroom to illustrate the importance of contributing to RRSPs right away. Of course, most of us, including me, thought he was nuts. None of us 18 year olds even could afford to pay for university let alone save for retirement.
Although I did start contributing to an RRSP around age 23 sometimes I wish I had started right out of high school. Even though I wouldn’t have been able to afford to contribute very much, every little bit helps and the longer it stays invested the more it has a chance to grow.
So whether you are young or old, never stop saving, and especially to those who are young, do not procrastinate when it comes to saving for your retirement. Time flies by so quickly and you will never regret being prepared for your future.
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