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When should you start planning for your retirement?



A distance of 100 miles begins with a single step.

The saying holds true for everything big in your life – retirement planning is no different. Retirement planning is one of the mandatory long-term financial goals, yet, most people are not ready to take that first step.

You may be in your 20s, 30s, or even 40s, and retirement seems like a lifetime away, and you always think you can do it later. However, the reality is that your retirement is coming faster than you think, and it will be too late if you do not act now.

At Right Horizons, over the years, we have met clients that are doing financial well but have ignored their retirement planning altogether. Research shows that people usually place retirement planning as the last financial goal. Many don’t even consider it a key event and plan for it. It is crucial for everyone to know the right age to start preparing for their retirement.

The need for retirement planning

Before we talk about the right age, it is essential to understand the need for retirement planning. You must do retirement planning to maintain your desired lifestyle in your later years and ensure financial stability for you and your dependents. Also, it helps you financially prepare for major life events.

The right age to start planning for retirement

The best time to start retirement planning is the day you get your first salary. However, when you start earning, there are other dreams and desires you need to fulfill. Hence planning for retirement gets delayed. After a few years, you get married, your expenses increase, and savings get sidelined.

However, when you start early (for example, in your 20s or early 30s), you have time on your side to start building good habits and compounding savings. You can achieve more with fewer savings if you start early.

At Right Horizons, we tell our clients that if they have not started retirement planning, the right age to start is NOW. You should not delay retirement planning even a single day after reading this article or knowing about the importance of a retirement plan.

Doing what others are doing

We are social animals, and our natural instinct is to follow the herd. When it comes to finances, we tend to do the same – another common financial mistake. Your friend recently went on a Cruise, and now you want to do the same? He invested in the small-cap funds, and you want to do it. You may be tempted to do everything that people around you are doing. You can avoid it by asking yourself questions like – Do you need what others are buying? Once you start asking yourself questions before making a financial decision, you will automatically save more money. Everyone’s financial situation and needs are different. Hence, you must not imitate someone else’s life. You can be in big financial trouble soon.

Why should you start retirement planning early/now?

Below are some benefits of starting early with your retirement planning:

Good Return on Investment :

There is no point in keeping your money in the savings account or having most of your investment in a low-return investment option. Selecting the right investment instrument is the key to generating more returns. When you start early, you have flexibility in choosing an investment instrument and a lot of time to rectify your financial mistakes, if any. With more time in hand, you can opt for high-risk, high-return instruments – with more time, investment risk gets reduced significantly.

Tax benefits :

There are many retirement plans or retirement investment options that help you save tax. When you invest in retirement plans, you can take advantage of various tax benefits that you may not be able to take if you wait for a unit later. Also, retirement plans may assist you to increase the size of your tax returns.

You have time for other important financial goals :

If you are already in your late 40s or 50s and starting retirement planning, your focus will be on this single financial goal. However, when you start retirement planning early, you will never be burdened with the amount you need to put in the retirement bucket. As mentioned above, you can achieve more with less investment. You will have more financial goals like child education as you age. You can work on other financial goals without impacting your living standards when you start early.

Things to know before starting retirement planning :

You can do retirement planning on your own or take an expert’s help. In either case, you need to answer below:

  • Your retirement age: Gone are the days when retirement meant 60 years. Today, many people want to retire early. If that is the case with you, you must decide the age at which you want to retire.
  • Your retirement corpus: You should figure out the retirement corpus you will need before you retire. It will help you invest the right amount to achieve the goal. Advisors at Right Horizons can help you with the numbers as it requires expertise for this calculation.
  • Your post-retirement lifestyle: If you want to live a simple and relaxed life, you will need to save less for retirement. However, if you plan to venture post-retirement, you need to save more. Hence, you must be sure of your lifestyle post-retirement.


Start your retirement planning now. If you are unsure of the path, experts at Right Horizons can help you secure your present and the future. Contact us today and leave all your financial worries on us.

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