The most important thing is to start saving money for retirement as early as possible in your career because in this way the monthly amount you have to allocate is lower. However, it is difficult to explain this to a 20-year-old who is just discovering the world and wants to experience as many things as possible. However, the money you raise should not be kept, because it can be devalued due to inflation. Theoretically, you can invest this money in many financial instruments to multiply it, from mutual funds to stock market investments.
How much should I save for my retirement?
When you’re in this age group, you’ve just started your career, and your salary probably reflects that. The positive part is that you are about 40 years old until you retire and so you have enough time to catch up. The most important thing you can do is start saving, at least 10% of your salary.
When you’re in this area, you’ve probably been promoted a few times in your company, and you’re better paid. But life has not become easier. Maybe you got married, settled in your house, you already have children, the bills and the rates flood your mailbox or inbox. All of this affects your remaining income at the end of the month, so retirement savings are probably not your priority right now. But according to calculations, you should already have 2 times= your annual income saved up to the age of 35 and 3 times your annual income by the time you start the 40s.
You’re probably at the height of your career. You worked hard and it should already be visible. The house is probably bigger now, the kids have grown up and you might want a new car. Let’s be realistic, you spend money on things you don’t need. If you’re like most people, you’re probably behind with savings. It is recommended, by the age of 50 you have already saved 6 x your annual income set aside. At this point, it helps you to save as much as possible and to have a high return on investment. Since you are still 15-25 years old until retirement, you have time to go through several economic cycles, so the actions are still your friends.