Although you are still far away from the pension, you should start preparing your financial plan for your pension. You can ask any professional financial planners from all around the world for the best advice for your pension. Most of them are going to recommend similar advice. They will recommend you start preparing your pension fund. There is no better time for starting your investment than today. You can start saving your money from small until you are ready to save a big investment from your pocket. There are a lot of benefits that you will get by preparing your retirement fund from now.
Benefits of Saving for Your Retirement Fund From Now
a. Reduce the risk of outliving all of your assets
When you are retired, you are going to lose all the access to your regular income (especially if you are an employee). With people having a long life span today, you may be able to spend a lot of your time in retirement.
You will spend a lot of your money covering your living expenses when you are getting older, including the healthcare cost. Healthcare will be one of the most expensive costs that you will spend when you are retired. If you would like to live until the end of your life comfortably, you may want to have enough money for your retirement fund.
b. You can live independently during your retirement
This is another benefit that you will get when you have enough retirement funds in your account. You may want to spend a lot of your time with your children, but you don’t want to cause a burden to them. Many retirees cannot afford to live independently because they don’t have enough money on their retirement fund. Then, they depend a lot on their children.
c. You can take advantage of the miracle of the compound interest
It is recommended for you to start saving for your retirement fund as early as possible. The earlier you can save for your retirement, the better result you will get. This is according to the concept of compound interest. This is an interest that you earn on the reinvested earnings and initial savings. The longer you have to keep your pension fund stashed, the larger your account will grow. It will be easier for people who are around 25 years old to build up their retirement funds, compared to people who are around 50 years old.
d. You have full control over what you can save
Saving up your money for your pension is something that you can control easily. You are the only one who is responsible for deciding how much money you will save every month. You can also decide when you can start saving for your retirement fund. It is recommended for you to compare all available investment types, so you can choose the best vehicle to invest your money in. As a result, you can have a good estimate of how much you can save for your retirement.
e. You don’t need to rely on the social security
Even though you are paying your GSIS and SSS regularly, you want to have another income source during your retirement. If you would like to live comfortably as a retiree, you can invest in some separate retirement accounts. It will ensure that your retirement fund will be good enough to cover your monthly expenses. You are the only one who knows how much money you need every month after you are not working anymore. It will give you a lot of flexibility when you don’t rely on social security.
There are a lot of benefits that you will get when you prepare your retirement fund as early as possible. You can also continue funding your retirement account by paying your SSS and Pag-IBIG in this country, so you are eligible to receive the social security pension for your retirement. When it is necessary, you can consult with your favorite professional financial planners. They are ready to help you calculate the total money you will need for your retirement. By knowing all of these numbers, you can calculate the total money you can invest on certain investment types. If you urgently need money, you can look here for an emergency loan from Robocash. Here you can get a loan if you are under 70 years old and have additional income in addition to your pension.