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5 Reasons to Start Planning Your Pension Today

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Today’s society has created a culture that is based on the now. People often forget to pay attention important things they will need in the future. This lack of foresight can lead to poor or last minute retirement planning, leaving people in a position where they have to continue working into their twilight years. Even worse, poor pension planning can lead to being in a position where you are unable to work and have little income. This is the first and primary reason it is important to plan your pension now.

Another thing to consider about planning your pension now is that employers often offer to match the amounts that you place in retirement. This means the sooner you start, the longer you have to earn all the free money they are offering. While it may only seem like a little, it can really add up over time. If your employer is matching 200 dollars per month, that is an additional 2400 dollars per year in free money!

Another reason you may wish to start planning your pension today is because you can take advantage of low fees. Most people invest their pension in a safe slow growing mutual fund or interest bearing bond and the cost of having this managed is growing every year. Saving this extra bit now can make a difference of retiring 3-4 years earlier! The more you are able to save, the earlier your potential retirement.


Planning your pension now can also help your to maintain consistent saving through the years. Taking advantage of automatic payroll deduction means that you will have your money put away without ever getting your hands on it. Plus, it will be locked into your retirement accounts and investments. Studies show that the less access we have to our money, the less likely we are to spend it. This can be especially true when you are looking to buy the newest flat screen TV. Avoiding purchases like these will keep your retirement balance strong.

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Finally, you will want to take advantage of any investment options your company has. If it is a good company that is looking at a trend of long term growth, then you will benefit from company stock purchase. These plans often allow you to purchase stock t a discount. This stock will grow over time providing you with a solid and steadily growing retirement investment. The sooner you start purchasing company stock, the longer it has to mature, meaning more money for you in the long run.

While it may not seem like it now, planning your retirement is important to continued financial security. The sooner you get started the better of f you will be when you decide to leave the workforce. Proper planning will allow extra money to use in enjoying the free time you gain. It is never too soon to start planning your pension, but every day you wait makes it harder to reach your goal.



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