When To Start Thinking About Retirement
For most young people, the idea of retirement isn’t one that has frequently crossed their mind. Retirement is seen as being for older people, and the notion of preparing or saving for retirement may not have occurred to you if you’re quite young. However, the younger you are when you do start preparing for retirement, the more money you’ll be able to save, and the more comfortable your retirement will be – meaning that although it’s scary, it actually does make sense to start planning even if you are only in your early twenties or thirties. Here are some methods you could use to start planning for your retirement right now.
Workplace Funds
Most workplaces will have a pension fund or a setting up a self managed super fund scheme that you’ll be able to pay into from as soon as you start working there http://www.superhelp.com.au/our-services/fund-setup/. If you’ve not heard about any such scheme provided by your workplace, it might be worth asking your manager or HR department if they have anything to offer. The great thing about workplace pension and self managed superannuation schemes is that the payment will usually be taken straight out of your monthly salary, meaning that you won’t have the money in the first place to miss. This is often a really effective way of saving for most people. Many employers will also make some sort of contribution themselves as well, meaning that you’re also making more money for your future by using their scheme.
Investments
If you’re not clued up on economics and the stock market, investing in shares may not be something you have ever really considered. However, if you do it right, it can be a really effective way of saving and also making some extra money for your future. If you’re worried about the risks involved or losing all your money by investing in a company that performs badly, you may want to consider bonds, or other types of shares that have a guaranteed return regardless of the outcome. This might also be another question for your employer, as some workplaces do offer shares for their staff.
Saving Up
If you want a risk free, flexible way to save for your retirement, you might want to consider opening a savings account where you can save as little or as large an amount as you’d like per week or month. If you’re worried about having access to your money or forgetting to pay in, you could set up a standing order or automatic bank transfer for a set amount on each of your paydays, and make sure that you get a savings account that you don’t have instant access to.