Several individuals are worried to secure their current lifestyle in old age.They often look for various key factors to consider when saving for retirement.
You can preserve your current lifestyle through retirement planning. It is one of the major financial milestones in one’s life. Most of us realize the significance of retirement savings at some stage of our life.
You need a suitable retirement plan to achieve your retirement goals as early as possible without facing any major hurdle in your life. Here are 15 key factors to consider when saving your money for ensuring a secure retirement:
(1) Starting Age To Begin Saving
It is one of the most critical factors to consider when saving for retirement. Retirement savings should be your topmost priority & not a financial burden on your lifestyle.
You should begin retirement savings as early as possible, probably in your 20s. This will ensure you to successfully achieve your retirement goals.
If you get delayed to initiate the your saving process due to any reason then it will be much harder to reach your old age savings goal as you have to increase your salary contribution for your old age saving or even delay retirement.
For example, if person “A” begins saving at an age of 25 years with contribution of $3000/year in a tax-deferred retirement account for 10 years and then stop saving completely. By the time person “A” reach 65, his/her $30,000 investment will increase to around $472,000 (with an 8% annual return).
On the other hand, if person “B” begins saving after 35 years of age with contribution of $3000/year in a tax-deferred retirement account for 30 years. By the time person “B” reach 65, his/her $90,000 investment will increase to only about $367,000 (with an 8% annual return). That’s a huge difference in saving money for his/her old age.
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