When to start saving for retirement

by Krantcents · 14 comments

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Is there a right time to start saving money for your retirement? In short the simple answer is yes, as soon as possible. My theory and that of many others is that as soon as you start working you should start saving for your retirement. Even if it is just a tiny percentage of your salary each month you should put away something for your golden years.

Generally people start earning an income in their 20’s and although it may be a time fraught with paying back student loans, setting up house and even getting married, preparation for the future is vital.  A difference of even a few years can impact on your retirement and the sooner you start investing in a high interest retirement annuity with an adequate tax rebate, the better.

Saving for your retirement is an investment in your future and like any investment, the longer it has to grow, the more interest it will accrue. Each year’s gains will generate their own gains the following year, so even a small monthly contribution adds up over time. As your income increases you can increase your retirement fund contribution accordingly.

Financial analysts have pin pointed your 30’s as the vital years for retirement planning as you have the potential to earn the most money during these years and have an abundance of energy to plough into work. By the time you reach your 40’s you would need an aggressive savings approach to make up for missing saving in your 30’s and you may never reach the same targets if you start in this decade. If you only begin to save for retirement properly in your 50’s analysts have found that unless you are extremely clever and have a large nest egg you may struggle to save enough or make reckless and risky decisions based on a lack of time.

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