At the age of 25, you might not yet be planning a retirement party, but it is a good idea to start looking at private pension plans.

The best retirement planning is made by acquiring good financial habits.

Congratulations! You’ve just celebrated your birthday and it’s time to start thinking about retirement. “Not me,” you may say. “I just turned 25 and I have a long way to go before I need to retire.” But when it comes to finances, it’s never too early to think ahead.

 Acquiring GooMoney lessons are lessons for lifeCredit: Image: photostock / FreeDigitalPhotos.netd Habits

Ideally, you began saving with your first paycheck.  But if you didn’t, start now.  Put aside some of your income into a savings plan each month. If your employer offers you a savings plan, go for it. Even if your retirement seems far away, the sooner you start, the more money you will have at the end.

Create an emergency stash. If you can put aside six months’ worth of your expenses into a savings plan, you will have that for “rainy days,” and you won’t need to break into your retirement savings in the event of a crisis.

 Once you have accumulated an emergency fund, start looking for more ambitious investment plans. When you are younger, you can put more of your savings into riskier investments (though you should never risk the entire sum) than when you are older. This is because you have more time on your side to “make up” for any market losses.

Never Take Anything for Granted

As you grow older, never assume that your life or your investments will remain static. Keep reviewing your portfolio with a trusted financial advisor. Look at the twists and turns in your life – your changing needs and the rises and falls of the markets – and reevaluate accordingly.

As retirement grows closer, your plans will become more focused and definite. Evaluate your investments and put your savings into more conservative investments.  The time that once was on your side could be your worst enemy if the market drops, and the value of your investment account tumbles with it. 

Whatever you decide to do, acquire good habits while you are young and plan carefully as you grow older.  And if for some reason, you didn’t start saving as soon as you got your first paycheck, there’s no reason why you can’t begin saving and investing now. After all, planning your retirement doesn’t need to be scary.


Disclaimer: This article is for educational purposes and is not a substitute for investment advice that takes into account each individual’s special position and needs. Past performance is no guarantee of future returns.