You might not retire in your 40s, 50s, or even 60s, but it’s a good idea to be prepared for when the time comes. It’s especially important for people to start planning early in today’s day and age, as programs like Social Security have unclear futures. A head start also helps you get an idea of your expenses, so maybe you can retire a little earlier than most. Here’s a closer look at why young people should plan retirement.
Unclear Future for Government Programs
Governmental programs like Social Security and Medicare have been supplementing retiree’s incomes for the better part of a century. Unfortunately for younger generations, these funds don’t look like they’ll be available by the time they retire. If you don’t want to rely on these kinds of governmental programs to pad your income after you retire, it’s best to start your own plan sooner rather than later.
Anticipating Expenses
The more you pay attention to and document your income and expenses throughout the years, the better picture you’ll have to look at when you think about retirement. You’ll need to know how much to save up throughout your career in order to live comfortably after retiring. Think about your lifestyle in addition to your necessary expenses and be sure to save up enough.
Early Retirement Potential
The prospect of retiring early can be exciting, and with enough diligence and preparation, it could be a viable option. If you want to be able to retire early, it’s a good idea to start planning well in advance. You might hit it big at some point during your career, but you’ll want a well thought out retirement plan to fall back on in any case.
Are you interested in getting started on retirement planning in Tucson while you’re still young? Please don’t hesitate to call Financial Directions, LLC at (520) 408-7777. You can also check out our website to see how our risk and portfolio analysis services can help you.
