It doesn’t take a financial planner to know that retirement strategies should fit the stage in life you are in. Indeed, retirement savings and investments in your twenties may no longer be applicable or as effective as when you hit the 40s. Some things remain the same though, for instance, spending smartly, diversifying investments, and planning for emergencies. No matter what your age is, it is good to have a solid and appropriate retirement plan in place.
Twenties
Retirement may be far from your mind when in your twenties but it’s actually the best time to start planning for it. You have the advantage of time. Use it. Set a budget that includes retirement plans and stick to it. Better yet, talk to a financial planner to see what your options are. Your company may be offering a good retirement package. Ask how it works, if you can upgrade it, what happens if you change jobs etc. If you have student loans or other debts, pay them first.
Thirties
Most people in their thirties are already gainfully employed but now paying for mortgage and the children’s tuition fees. It’s tempting to stop your retirement savings with such increasing responsibilities but opt for good financial planning instead. Find a way to balance saving and spending. Remember that in your thirties, you have a better view of where your career is heading so it’s also the best time to draft a long-term financial plan.
Forties
In your forties, retirement feels closer and you should have saved for it at least. This would be a good time to re-evaluate or strengthen your plans. You are probably more aware of your needs and expenses, considering health care costs, and imagining how much you would actually need in your retirement years. If you haven’t started yet, it’s not too late but it’s best to consult with a financial planner on how you can save aggressively and invest wisely.
Fifties
The best scenario for those in their fifties and above is to have their retirement savings ready. This is a good time to work with a financial planner to make sure you are getting all benefits that should be accorded to you. However, that’s not the case for everyone. Some people have a lot of catching up to do and need to work on their plans. This may even include delaying retirement a bit.