Who cares about retirement planning in their 20s, right? I mean, why worry about your golden years when you’re on top of the world?
Well, the thing is, you don’t want to be stuck working at 67 years old. I’ve been motivated to save for retirement from an early age because I’ve seen too many senior citizens forced to work way past 65. My good friend’s dad worked until he was 71 and then died the next year. That flat out sucks.
I don’t want this to happen to you. If you’re in your 20s, I wanted you to take a few, very simple steps towards retirement.
What are powerful retirement moves to make in your 20s?
Join your company pension plan.
This is easy and simple. If you don’t want to stress about where to invest your money or you just don’t care to do the leg work, all you have to do is find out about the company pension plan and enrol yourself. You won’t regret it. Most employers match your money. So yes, you’ll be practically getting free money. There’s nothing to lose.
Set aside automatic payments.
If you want to make your own moves with your money, you can do automatic payments into your retirement account every paycheck. You can set this up with your employer or with your bank. You fill out a quick form and then your money automatically gets deducted when you get paid.
I recommend starting off small here. Something like $50 every two weeks will do. This will add up to over a $1,000 a year. When you’re ready to get more aggressive you can increase this amount.
Look into property.
Many retirees that didn’t follow a traditional career path, rely on rental properties for income in their retirement years. A father of a friend does this. He is self-employed so he decided to spend his savings on rental properties that will generate him money when he’s older and the mortgages are paid off.
This involves some risk and capital, but it’s worth looking into.
Don’t forget about retirement.
Believe me, the last thing on my mind is retirement most of the time. Thinking about retirement all of the time at 24 is a bit odd. However, all I ask is that you don’t forget about your retirement. Keep it in mind and try to remember that you’re going to want to retire one day.
Those are powerful moves you can make in your 20s to bring you closer to a great retirement when the time finally comes.
For the older folks– what retirement advice would you give your 20-year old self?