5 reasons why you should plan your retirement?

When you are in your 30s and 40s, retirement can still seem a long time away. You have other priorities such as saving for a house, purchasing a car, paying off your student debt, and saving for your child’s college. However, there are several benefits to starting a retirement fund early. Fortunately, many employers offer some type of retirement savings plan, so you can start saving as soon as you start earning a salary. Here are 5 reasons why you shouldn’t delay your retirement planning.

1. You won’t worry about being a burden to your kids

 Have you heard of the “sandwich generation ?
That’s the name for the group of people who are simultaneously supporting their children and one or both parents.
About 44% of middle-aged adults with children at home have at least one living parent who could potentially need care; 15% are full-fledged members of the sandwich generation who financially support both parent(s) and children.
A comprehensive retirement plan includes saving for medical costs and potential long-term care costs. When you know your expenses are covered, you won’t have to rely on your family to fill the gap.

2. Saving is easier when you have sufficient funds

Under normal circumstances, you'll have greater disposable income between the ages of 20 and 40. After 40, your responsibility increases significantly, with financial commitments like paying for your child’s education and servicing your home mortgage loan. If you only start saving at that point, it will be more difficult to build up your post-retirement disposable savings.

3. Higher return on your investments

When you start saving for retirement early, you have more time for those investments to grow and benefit from compound interest. Compound interest is the interest you earn on your principal sum plus previously accumulated interest or earnings. This can add up to thousands of dollars over time. This compound interest calculate  is a great way to see how powerful compound interest can be if you start retirement planning early.

4. You can be a really cool grandparent

A good retirement plan not only keeps you from being a burden to your kids, it gives you the resources to be an amazing grandparent.
Wouldn’t it be nice to take the entire brood on an annual trip or host your whole family at your spacious vacation home every year?
Even if your grand-parenting goals are a bit more modest, having adequate income means you can visit more often and be present for all their milestones and special events.

5. Save For Future Healthcare Needs

It can be challenging to think about your health diminishing as you age. Yet, the reality is that most of us will require some sort of ongoing medical treatment in our retirement stage. In fact, one report explains that someone turning 65 today will have at least a 70% chance of needing some type of long-term care in the years ahead. 

It’s no secret that this care can be costly. Saving today can help you build up enough money to cover those expenses down the road. If you’re interested in purchasing long-term care insurance, then it’s also wise to look into these policies as early as possible to secure the lowest premiums.