I still remember my school days when we used to go in bus to our school.There used to be a cobbler who used to meet us everyday and slowly we became good friends with him. We used to talk about our schooling, family etc,. But when ever we used to ask about him about his past he used to go behind the wall. Slowly he started to open up with us and one day I was shocked to know that he was a school headmaster and was a very rich person once upon a time.
He said that he had all the riches but he had never thought of his grey days when he will be not in a position to earn.He said he always thought that he can save later for his retirement, why now?
Old age is something which is going to come to each and every person in his life cycle, when he will be weak and not in a position to earn. So retirement planning is the most important part of one's life. Be it for a man or for a woman. Planning for his retirement is very important.
Many people ask me why now? I say why not now? Poeple at young ages think that old age is something which is too far and they have the whole time in the world for them to plan at that time. But the conception is wrong as when you start earning and settling in life the responsiblities grows and we dont get time to think for our retirement.
One more importnat thing is the power of compounding of your money. The early you start saving for your retirement, the lesser is the amount required for you to save to arrive at your retirement needs. For example Mr.X starts to save for his retirement at the age of 25 and he is saving 25000/- every year for next 25 years. He will be left with a corpous of approximately 50,00,000/- for his retirement and he can live happily with the corpus. In the same way Mr. Y starts to save for his retirement at the age of 35 and to arrive at the corpus of 50,00,000/- he has to save 75,000/- app. for next 15 years, so as to enjoy his retirement benefits.
Hence from the given example on can understand the need of saving for retirement at young age so that you dont have to worry later when you have more responsibilities on your head.