Retirement—not exactly something we often think about, right? Especially since retirement age is, for most of us, still decades away. Still, setting up a solid pension plan as early as possible might be one of the most important things we could do. Not convinced yet? Well, consider that:
You can survive the cut: With most pension plans, ten percent of your income will be put into your retirement savings. Not exactly a small amount, but it also won’t strangle your budget. More often than not, what this means is that we have to cut back (slightly) on, say, eating out, gourmet coffee, and other luxuries. But again, only slightly. It might seem like a big deal, but for all practical purposes, it’s not something you’ll really miss.
It’s a good investment: Pension plans are basically just like an investment account (so instead of your money simply sitting there in a bank, an investment house will buy investments at your discretion) with a couple of extra rules. The ‘investment’ part is what a lot of people are unsure of, especially in picking an investment option. Well, the thing is, any form of investment is better than having none at all, and the recommended option is usually pretty good.
It’s easy: Retirement savings are often coordinated through your company’s HR office, which will also help you go through all the paperwork involved. Or, you could simply go to just about any commercial bank and ask about their options for pension plans. The process is usually quite painless, and if you’re unsure about anything (especially investment options) just stick with the default picks. You can alter them later on, anyway.