5 Reasons to start saving for retirement NOW

For some of us, retirement may seem like a lifetime away and so it’s the last thing on our minds. However, not planning or saving for the future may lead to financial worries later down the line, and not leveraging our time now may lead to many missed opportunities such as the powers of compound interest.

Whilst saving for your retirement right now might just seem like another deduction from your paycheck, you’ll thank yourself for it later.

Here are our top 5 reasons why you should start saving for retirement early for a better financial future:

1. Practice good financial discipline

Getting into the habit of putting away money for retirement every month will teach you to be disciplined in making sure that you’re sticking to your plan. Whilst saving for retirement is more of a long-term financial goal, you can apply the practice, discipline, and momentum to also reach your short-term financial goals. This may help you to not get derailed by inconsistency and temptations, no matter what your financial goals are.

2. Compound interest 

The saying goes “time is money” and this couldn’t be more true when it comes to savings. The sooner you start saving, the more time your money has to compound so that you can earn a higher return on your savings as the interest accumulates over time. So start early and leverage the time on your side to allow you to sit back and see your savings compound.

3. Living costs are rising 

As the costs of living continue to rise we can only imagine what it’ll be like in decades’ time, so it’s best that we’re fully prepared. Rising living costs mean that the predicted amount we should generally save may not actually be enough for our future expenses. The sooner you start, the more time you can give yourself to save more money.

4. You shouldn’t just rely on your workplace pension

Relying solely on your workplace pension may not be enough for you to feel financially secure should any unforeseen expenses arise. Contributing to your own retirement fund, alongside having your workplace pension, may help you to be more prepared and live comfortably when you retire. Plus, why should we have to compromise our lifestyle after retirement?

5. Save now, retire sooner

Imagine this, you’ve worked all these years and decide you want to retire, but then you realise you can’t actually afford to. We don’t want to be in a position where we’re left with absolutely no choice but to work in order to make ends meet. Starting to save for retirement now means that you could have more money saved to retire sooner, giving you the choice and control of when you want to retire.

The bottom line is, there is no better time to start saving for your future than now. Use the time you have on your side to make the decisions your future self will thank you for. You don’t need to start saving thousands a month to start. You can start off by putting away a comfortable amount, then gradually increase your contribution amount and remain consistent. 

The following is for general information and is not intended as a form of financial advice by Finndon or its representatives, nor the information intended to be relied upon by individuals in making any financial decisions.