Why You should Plan Your Retirement Early

1. Rising Life ExpectancyWith the technological advancement in medical and health-care industries, we are expected to live well into our ripe-old age. But what happens when your bank account runs dry while you have another 10 years to live? Be on the safe side. Don’t underestimate your lifespan.

2. Travelling

If you plan your retirement right, you would have sufficient money to afford for some luxuries in your later years i.e. overseas travel. While you may not have the same energy as before, you’ve got plenty of time in hand, allowing you to take trips at your own pace.

3. Emergency Fund

Things happens. Most often, you’ll need money to deal with these unexpected expenses. If you don’t have an emergency fund of at least 3 months of income stored in your bank account, then you should start saving up for one now.

4. Enjoy FreedomYou won’t have to live with your children just because you can’t afford to live on your own. You wouldn’t want to be treated as a liability they cannot afford. Being financially independent means having your freedom and to be able to retire in style!

5. Post-Mortem ExpensesWhile it’s true that you can’t take the money with you, your personal expenses don’t stop at death. If you don’t have sufficient personal savings, your loved ones will be responsible for covering these costs. i.e. funeral services and debts payment.

6. Compound EffectPutting money into long-term investment funds at an early age gives it more time to mature. The results of compounded investment gains can be astounding when stretched over a long period. It’s getting a little bit technical here, but do remember this – procrastination can be very costly. Take advantage of compound interest now!