Why You Should Start Investing in Your Retirement in your 20’s

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If there’s one thing certain in this lifetime, it is that there would come a time in our lives when we grow old, stubborn and our bodies are completely incapable of doing any work. With that being said, we tend to follow our basic human instincts. These instincts are are all driven at the goal of survival. And to be able to survive in our mid-50’s, we need to have enough funds from our past jobs so much so that it will suffice all of our needs for the years forward. These savings may come in the form of investments such as businesses that will serve as passive income or direct income savings that are claimable upon retirement. Well, for those who are unable to establish a passive income source, we tend to rely on the latter – retirement plans.


A retirement plan is one of the most subscribed policies in any insurance institution. Just as mentioned above, this plan is all about securing our survival so it’s no wonder why almost every working citizen in the world tend to get one for themselves. But just as how hard is choosing what kind of retirement plan are you going to invest for yourself, deciding when to start your concerns about this is equally as hard.

In a couple of instances, we see that most people decide to invest for a retirement plan at the age of about late 30’s or early 40’s. But as observed, this is one of the crucial times to apply for such plans. Well it might be favorable for those who have a nicely paid job. But for those who are at an average wage, deciding to apply for the plan at your 30’s and 40’s might not even be a good idea at all.

What we are trying to imply is it’s best to plan for things that talk about security as soon as possible. Yes, it’s true that this age bracket is the time when you could enjoy life and live it to the fullest. It’s where you first plan to start your own life. You find a job and a place to stay, not to mention the cost for food and other stuff that we crave to buy. But securing your future at an earlier time frees you to the burdens that you might come across with at the times when you’re no longer capable of generating money for yourself.

The advantage of starting this early is that it give you more time to be prepared in life. As reviewed by Pew Research, most people between ages 18 to 34 who are only partially confident or totally not confident about retirement end up being the most troubled citizens in the years to come. That portion is about 35% of the American citizens. And we can apparently see that what we’re talking about is true nowadays.

But as observed, saving for retirement plan is increasingly becoming a burden since most incomes are just enough to provide for basic necessities. How much then can be allocated for a retirement plan? With that being said, we’ve decided to give a few tips on how to better prepare for this one at the earliest age of 20’s.

  • Save a little often. As someone who is at their 20s, there’s no denying that the basic salaries isn’t that big coupled with demands. So as an advice, push yourself to save a small portion of your money but in a regular basis. In a book written by Entrepeneur PH, saving at least 10% of your income could already establish a good savings start-up in a year or less. Remember that the longer you delay establishing savings, the greater will the paycheck pinch be later in life.
  • Explore corporate retirement benefits. Choose the job you wanted to be with for a long time carefully. Explore their benefits rather than the payment. Those with a less salary but with good benefits are better ones most especially if you have a long-term projection in staying with that company.
  • Fund for a retirement plan. If you settled yourself a job, don’t think twice in getting a retirement plan. Choose the best one and also the insurance company that will be most favorable for you.
  • Scrap off credit cards and maintain a low debt profile. This is one of the money wasters in the long run. So better scrap these off.If you haven’t had a credit card yet, don’t bother to apply for it after all. It may sound good to have credit, but it’s no better off than than saying that you’re building a debt because you’re unable to pay a purchase as of the moment.  Otherwise, maintain a healthy dose of debt limiting it to only 30% of credit utilization. This means that if you earn $1000, then maintain a credit of only $300.

Be sure to plan as early as possible since each one of us wanted to look back with a smile in our retirement years, not to look back with regret.