At What Age Should You Start Thinking About A Pension?

Retirement is an issue many people would rather not think about during their youth. To some of them, it signifies being old. They would prefer postponing the issue until they reach the said age. Therefore the question arises whether you should be saving so that you can live comfortably on your pension when you will no longer be able to earn an income through work. The answer to this question is not as straight as it seems because many factors are involved.

Reasons that young people give for not thinking about pension:

• It isn’t human nature. We were created not to think about the future. The present is more real and tangible.

• The money is too little to be saved.

• There are more important things to think about.

Useful Pointers about when to think about pension

Saving for retirement should start as soon as possible but people are busy using their money for other things. Typically, it is a good idea to start thinking about your pension when you get you first job and earn your first salary.

But this is normally not possible because this is the time you are thinking of starting a family and settling down. Your wife and kids will need basic necessities. However, you don’t have to save all your salary. Saving minimal amounts of your money will eventually accumulate and become a huge account.

It is understandable to fear growing old but not planning ahead is not the best solution. It can lead to an uncertain future.

If you don’t trust yourself to save as soon as you get the pay check, you could request your employer to be deducting off a certain percentage of your pay which can be taken directly to your pension kitty.

The Federal government has such schemes where you can agree with your employer to save for retirement. A good example of this scheme is the 401K plan in which even your employer will match your contribution with his own therefore you will double your savings.

The earlier, the better.

In your twilight years, you will find it difficult to save for a pension, as your expenditure will double. This is because:

• you will have children or grandchildren who might need financial assistance.

• In addition, you might develop health complications on which you will spend your entire savings.

• Likewise, you will not have the strength to make much money to save as pension when you are nearing retirement.

Therefore, the sooner you start saving while you are still young, the better for everyone.

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