Save Now. Retire Rich

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Human beings have advantage over animals as they have the ability to plan and think. But most of us find it difficult to plan even for six months ahead. If six months is difficult, then how will we plan for the distant future- like retirement?

It is very important to safe proof your retirement, as in this modern era, nothing is certain. It is said "Time is Money"- then why waste time in starting saving for retirement? It is always better to start saving early than to begin later in life, and regret for not having started earlier.

We often think that we will start from tomorrow, but "tomorrow never comes", and one day we realize that everything is slipping from our hands. Therefore, it is very important that you start saving "NOW" for your retirement or you will have to repent later in life. Below, is a list of retirement truths that will prepare you for the future.

1. Modern Era

If you compare your retirement with that of your parents, you will realize that they are poles apart. Earlier, social security, pension cheques, and savings were enough for safe proofing retirement. On an average, people did not even live after the age of 70 and therefore, retirement was not too long. But today, the lifestyles are expensive and even the basic necessities of life have sky rocketed and therefore, more needs to be saved to live happily after retirement.

2. Three legged stool not worth to rely on

Earlier, the people used to rely on the three-legged stool, i.e. social security, pension cheques and savings. However, today we cannot rely on this three-legged stool as it can easily collapse.

We don't have sufficient control over social security and pension cheques, but we have enough control over our savings. Therefore, the other two legs of the stool may have cracks; we have to rely only on the third leg, and can make it as much strong as we want to. What you will save will have a major impact on your future.

Taking into account these two points, we now know that it is extremely important to save for retirement, but one more prerequisite is to START YOUNG.

It is very obvious that the person who starts saving at 25, will have more money available during his retirement than the person who starts saving at 35.

There are three things under your control that will have an impact on your retirement- 1) How much you invest, 2) The rate of return you earn on your investments and 3) the number of years those investments have to grow. If you start early, the more money you will have and better opportunities too.

There is no hard and fast rule that you have to start saving at a particular age and thanks to compound interest now that have advantage for your amount rather than just the additional principal that the young person puts in.

Therefore, don't delay to start saving for your retirement. Start saving at 30, and life will be great at 60.