Retirement Planning: Why you Should Start Planning for Retirement Early

Retirement may seem far off, but the truth is, it’s never too early to start planning for your golden years. By starting early, you can give yourself more time to save and invest, and create a retirement plan that gives you financial security and peace of mind.

At Lyons Financial Services, we understand the importance of starting early when it comes to retirement planning. Here are some of the benefits of starting early and some tips on how to create a solid retirement plan:

More time to save: 

The earlier you start saving for retirement, the more time your money has to grow. By starting early, you can take advantage of compound interest and watch your investments grow over time tax free.

Lower monthly contributions: 

By starting early, you won’t need to contribute as much money each month to achieve your retirement savings goals. This means you can put away smaller amounts of money each month and still have a comfortable nest egg when you retire.

Longer life expectancy:

People are living longer than ever before, which means that retirement savings need to last longer too. According to research, the life expectancy in Ireland is increasing. Starting to save early gives you more time to accumulate the funds necessary to support a longer retirement and can help ensure that you have enough money to live comfortably throughout your retirement years.

Option to retire early:

Retiring early is a goal for many people, and by planning for retirement early, you can increase your chances of achieving this goal. 

Pay less tax

You can reduce your tax bill by contributing to your retirement fund, which can free up more money to invest in your future. See our article for more ways to reduce your tax bill here

Take advantage of age-related limits:

Retirement accounts have age-related contribution limits, which means that you can contribute more money as you get older. By starting to save for retirement early, you can take advantage of these limits and contribute the maximum amount allowed each year. This can help you build up your retirement savings faster and achieve your retirement goals sooner.

Peace of mind: 

Perhaps the most significant benefit of planning for retirement early is the peace of mind it offers. Knowing that you have a retirement plan in place and that you’re taking steps to achieve your retirement goals can alleviate a lot of financial stress and worry. You can enjoy your life knowing that you’re working towards a secure and comfortable retirement.

So, how can you create a solid retirement plan? Here are a few steps to get you started:

Set goals:

Determine what kind of lifestyle you want in retirement and how much money you’ll need to achieve it.

Make a budget:

Calculate your monthly expenses and create a budget that includes contributions to your retirement accounts.

Work with a financial advisor: 

A member of our team can help you create a comprehensive retirement plan that takes into account your unique goals, risk tolerance, and financial situation. They can also review your pension regularly to ensure you are still on track.

Contact us today to learn more about how we can help you achieve your retirement goals.