There is an expression that goes, “Make hay while the sun still shines.” And this means that when the conditions are in our favor, we use them to our advantage. This saying also holds true for retirement planning.
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We may not be thinking about retirement just now because we are young. But in the long term, it will be advantageous to start making retirement plans as soon as feasible. Continue reading to see why you should start making plans for your retirement today, whether you are employed here in Qatar or in the Philippines.
Benefits of Planning Early
For younger employees, thinking about retirement may be the farthest thing from their minds. After all, they look forward to many years of work. But regardless of your age, you should not wait any longer to plan your retirement.
Here are some reasons to guide you:
1. More years to save
When you start saving at a younger age, you can only allot a small portion of your earnings towards your retirement fund. For instance, if you plan for retirement at the age of 25, you only need to set aside about Php 1,000 (or roughly QR 80) a month. But if you started saving late, you might have to triple the amount that you need for a retirement fund.
2. Take advantage of compound interest
One benefit of saving up early is that your fund can earn compound interest. The money you save will earn interest in addition to the interest that you already earned. Your funds will grow even if you are only setting aside a small portion of your earnings every month.
3. Reduce stress
It has been observed that retirees feel stressed out because they don’t earn as much as they used to. But if you have a retirement fund in place, you will have peace of mind knowing that you have access to a higher income. You wouldn’t have this advantage if you had not planned your retirement early.
4. Avoid debt
Some retirees end up accumulating debts because of their lower income. Fortunately, you can avoid this scenario if you have a solid retirement plan in place. When you retire, you will have regular income to help you cope with expenses.
5. Help family members
With a retirement plan in place, you are assured of having enough savings to use in your old age. And you can also assign who will inherit your money when you are gone. Both you and your loved ones will benefit from the amount that you set aside when you were younger.
Find a retirement plan that suits you
While we know that there may be bills to pay or other responsibilities that you have to meet, planning for your retirement as early as possible will be beneficial for you in the long run. You might find it difficult at first because you could have used the money set aside to buy a gadget or other whim. But once you realize it’s worth it, saving up becomes a habit.
Remember to talk to various financial advisors. They can help you find a plan that meets your budget and requirements.
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