Retirement Planning: Why plan for retirement in your 20s?

financialexpress.com:

Is it feasible to begin planning for retirement in your twenties? Retirement planning is a topic that is frequently associated with older persons in their thirties or forties. The quick answer is that it is not only feasible but also strongly advised. Your 20s are a crucial decade for planning your financial future, and the choices you make now could significantly affect how you retire later on.

Let us know why retirement planning in your 20s is not only possible but also essential for securing a prosperous future.

The importance of early savings is one of the most persuasive arguments for beginning retirement planning in your 20s. The truth is that time is your best ally when it comes to generating wealth. Many young folks think they have a long time before they need to worry about retirement. The sooner you begin saving, the longer your money has to work its wonders through compound interest.

Imagine two friends, Rohan and Sam. Rohan starts saving for retirement at age 25, contributing $200 per month to their retirement account. Sam, on the other hand, decides to start at age 35, also contributing $200 monthly. Assuming an average annual return of 7%, by the time they both reach age 65, Rohan will have nearly twice as much saved as Sam. This illustrates the significant advantage of starting early.

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The best time to set clear retirement goals is while you’re in your 20s. You can lay out a plan for accomplishing your retirement lifestyle goals by imagining it. Do you want to spend your retirement years relaxing at home, taking up a second job, or travelling the world? Setting goals early on offers you something to work towards and inspires you to