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Preparing for retirement requires seeing the bigger picture years before it becomes necessary. It should be one of the most important concerns for working individuals, yet many people are not making the necessary provisions for their old age. When you start a new job or enter the workforce for the first time, the last thing you think about is saving for retirement, however, saving for retirement as soon as possible is essential to ensure that you live comfortably in your old age. For many, though, saving for retirement can seem like too complex a task. With some assistance, this doesn’t need to be the case.

How far away you are from retirement doesn’t matter; you should start saving and refrain from spending any of this money on other things. As a rule of thumb, it is recommended to save 15% of your gross income, over a period of 40 years, between the ages of 25 to 65. Remember, you will also need to develop a financial plan for major life events – both the expected and unexpected ones. This could include anything from medical needs to changing family dynamics.

When thinking about your financial future, it’s important that you make retirement planning a top priority. Today, it’s even more important to start planning for retirement early on, as fewer employers are offering pensions and retirement savings. This means that retirement is now more challenging than ever, with traditional pension plans becoming few and far between. Recently, the responsibility of saving for retirement has shifted from the employer to the employee.

Another reason why it is important to start saving for retirement as early as possible is that longer lifespans have led to people outliving their savings. For example, if you live up to 78 years old, you will be in retirement for a long time. Longer life expectancies also lead to more money spent on healthcare.

If you have not started saving for retirement yet, it’s not too late. Snijder & Associates can help bring the bigger picture of retirement planning into focus for you. Our advisors take a holistic approach to planning ahead and making certain our clients are prepared for their retirement.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

The importance of saving for retirement
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