Throughout our lives, we think often about how to invest, where, etc. However, it seems that planning and investing in our retirement rarely crosses our mind, because “there is still time”. Only when it approaches, do we begin to reflect on what to do. But it is perhaps more beneficial if we start thinking about it from the beginning of our careers.

Even if workers think they will be able to work for many years after retirement, it is crucial to remember that after working all their lives they need to rest, just like their body and mind… Workers will not be as productive as before.

In addition, as life expectancy increases each year, we will all live longer than our parents and grandparents. This is one of the reasons why it is now more crucial to plan our retirement. If we retire around the age of 60, we will still have about 20/30 years more to live, without working. Also, age brings health issues, which can mean spending time and money on doctors and hospitals. Thus, having the financial stability to properly care for and invest in our health can be crucial.

Despite this, retirement is for many the moment they have the most time and money therefore encouraging them to pursue goals and dreams, help family and friends, and do everything they could not do while they were working.

The fact that economic crisis, inflation and costs of living are inconstant and unpredictable situations should motivate us to plan and invest in retirement. Being prepared for these situations and having the retirement lifestyle we aspire to is very important.

But more than knowing why and where to invest, it is vital to understand how to do it effectively. Obviously, planning is key, as well as establishing achievable goals and prioritising them. We need to comprehend what we want to do with our investments, how we want to live, etc. So, we must calculate how much time is left, estimate the costs and start saving/investing our money. However, one must never forget to assess and understand the risk tolerance of this plan. That way, workers will find the best plan, with their resources and time. Also, getting a professional advisor to plan a retirement can be very helpful.

The best day to start retirement planning is today. Starting to think about it earlier in life allows employees to develop effective plans and be financially independent when they retire. However, it is vital to remember that planning a retirement should not stop us from living and enjoying the moment.

References:

1. Retirement Planning Guide, November 2019, Investopedia
2. Why Retirement Planning Is More Important Than You Think, Lifehack
3. Ten Effective Ways To Prepare For Early Retirement, September 2017, Forbes