It’s Not Early to Think About Your Pension Plan

Let’s face it – we live such hectic lives nowadays that even thinking about next year requires some time off in order to consider our options carefully. Retirement? Well, that is light years away! So, we avoid thinking about it. Or we say to ourselves, ’I’ll deal with that later’ and we never do.  However, with all the fuss that had become our daily routine, we really can’t afford not to think about our future. Because it is bound to catch up to us and we better be prepared.

Know where you want to be

It is a psychological thing – if you have an idea of what you want your retirement to be like, you will be able to organize yourself early on in order to achieve this. Having a well-defined aim in life has been proven to be beneficial for mental growth. Therefore, creating this aim could be one of your goals in life. Maybe not a predominant one, but a goal nonetheless.  So, if your ideal retirement is sipping martinis on a beach, we advise you to start thinking about it as soon as you can and start making arrangements.  Even if you have no definite idea, we still advise it, as drinking martinis or spending your time in spas sounds like a solid retirement plan to us.

Build your habits

It does not come as a surprise that people who think about their pension plan, tend not to spend their money that often. It is understandable to splurge once in a while, but don’t overdo it. While we are not advising you to start saving every cent, we are saying that thinking about your retirement plan can help you live more frugally.  It is simple math, the earlier you start thinking about it, more you will have when you actually reach your retirement. Those martinis will not pay for themselves.  Jokes aside, if you start thinking about it early on, you will probably manage to save up more. After you get married and have children, you will not be able to save as much as when you are single.  It is a good idea to try doing an age pension income test to find out how much you should be setting aside to be able to benefit fully later on.

Avoid upsetting your loved ones

This might not be an example for everyone, but the author of this article has spent several months with an extremely low pension fund and managed to upset half of the family and quite a few friends. “Do you not think about the future?’, ‘What will happen if you can’t work tomorrow?’, etc.  It is not just you who thinks about your future. Your loved ones will also worry if they think you are being too reckless and not taking into consideration that a lot of things can happen between now and your retirement.  Therefore, reassure them and show them that you are thinking about it and doing everything you can at this stage in life to ensure a comfortable future. If some of them are your age or younger, you can reassure them by letting them know that they will not be the ones you will come to if you need funds.

Later might be too late

While we do think that it is never too late to start planning our pension and saving for it, we never know what the future might bring.  One of the saddest sights you can see is an older person struggling to make ends meet. Do you really want to give up some things in order to have money for the bare essentials? We don’t think so.  You should start saving now while you are younger and able to earn more money, and put some aside for when you are older and not so able. Now when you have the energy and opportunity to work more, you can get an additional part-time job to supplement your income. However, if you lack money later on, it will not be so easy to get it.

Shape your future

So, to sum it up – it is never early to think about your pension plan (unless you are a teenager!) for many reasons but the most important of them being – because you can. You cannot change the past but as the future is not written in stone, you can plan it and while at it, why not include pension plans into your consideration as well?

 

 

Alex Williams is a journalism graduate, and a rookie blogger. She feels blogs are the perfect opportunity for presenting herself to wider audience, getting the chance to showcase her expertise and receiving recognition. She is a regular contributor at Bizzmark Blog  “http://bizzmarkblog.com”.