You’ve probably heard the saying that it is never too early or too late to start saving for retirement and this still rings truer than ever.
Although it might seem like you have your whole life to save for retirement, it is likely that you will only have about 40 years to save for 25 years of a quality life after your career has come to an end. This will require discipline and proper planning to ensure you have sufficient retirement funds to last you throughout your retirement.
According to Johan Scheepers, founder of Northern Natal Insurance Brokers (NNIB), it is ideal to start saving from the moment you receive your first salary as this allows more time for your money to grow. You can also adjust your savings plan as your career develops and you earn more money.
If you did not quite start saving early enough, you’ll probably need to play some catch-up on your savings, but this is still very much doable. “The easiest way to make up for lost time is simply to save more and cut back on your monthly expenses,” says Scheepers. “You’ll also need to be more aggressive when it comes to investing, be disciplined to never access your savings before retirement and you can even consider working a few years longer.”
Having a financial planner assist you in putting together a retirement savings plan that best suits your needs, will help you ensure a comfortable retirement.