Everyone plan to retire from work one day, saving at an early age for this purpose is essential, in others people opinion at age 20, you are properly just starting life, knowing how much money to save for retirement at every age will help you decide on when to retire evening at 30 or 40, now what are your plans towards retirement.
The high time to know how much money you need to save is now and planning towards achieving this goal is attainable.
Saving and investing whatever you can for retirement at age 20 and beyond can do you good than harm, in this post, we will discuss how to save for retirement during the stated years under review and the type of retirement goals you may need to know.
The amount you decides on to be saving we depend in your overall retirement goals, no one can give you her break down of money to be saving and investing for retirement than yourself, to follow the norms, we have rules for you to follow but note it is best to decide how on your own based on what you need when retired.
The rule says save between 10% and 20% of pre-tax income for retirement, however, some factors may influence the actual amount you are saving for retirement.
Factors that determine how much money to save for retirement?
- Age: Your current age determine whether you will need to save more, if you start saving late for retirement, you may need to double up your saving power to go beyond the normal rule.
- How you invest: the more risk to take to invest determine the over all achieve you may have at the end of the day. Invest aggressively and enjoy your retirement at best.
- Employee Contributions: There is a percentage of your monthly income that employees help to put away for retirement, you may decide to increase the money that goes into that.
- The plan year to stay in retirement: The more years you plan to stay in retirement matters, though it is impossible to predict how long to live but if in your family they do live up to 90s you need to save more.
Strategy to save for retirement at 20, 30 and 50
The saving strategy to adopt since you are ready to start saving and invest for retirement are discussed for every age, however, this strategy will only work when you make your retirement a priority.
Saving for Retirement in Your 20s
The money you invested now toward your retirement is better than the one you saving at 30 or 40.
Proven systems for the 20s
- Take more risks
- Don’t for debt with a high pay interest rate
- Build emergency funds
- Put your lifestyle spending in-check
Saving for retirement in your 30s
Starting saving for retirement at age 30s is getting late, but in a country like Nigeria where an average youth in the mid 30s has not gotten any job, to start saying for retirement becomes a problem but dont worry you still have some years to put things in order. it’s then essential not to delay more than expected. Saving may be a challenge now, it is achievable but becomes more difficult when marriage and kids has come in between.
Strategy to adopt for the 30s
- Don’t mix retirement money with other savings
- Take on side hustle
- Plan your family and kids expenses differently
- Invest in Stock and other financial Market.
Saving for retirement in your 40s, 50s and beyond
By age 40 and 50 you are getting closer to your retirement, some who planned well as even retire at these ages but for the sake of those who atr
Strategy to adopt for the 40s, 50s and beyond
- Invest more than previous years
- Put your retirement above other things, except God.
- Have a financial adviser
- Review asset allocation
- Reduce your Debt to zero
Conclusion: Make your retirement about you and you alone
Your retirement saving is all about you and your life, make it a priority, whether you’re still in your 20s,30s, or you have started enjoying your golden years, setting your retirement right matters, when you get to retirement without no saving, no one is coming to bail you out, it is then essential to saving and invest to enjoy retirement, know how much money to save for retirement depends on you. Dont be like some who work all day long without having anything to show for it at retiring age.