Get Aggressive About Saving for Retirement in 2017!
Saving for retirement “is not about an age,” if you ask Sharon Smith, senior manager, Jamaica National Building Society (JNBS). It’s simply about the income you’ll have after you stop earning.
“If you think of retirement in that context, then it means you could retire tomorrow morning if you choose,” she comments. And, sometimes, unfortunately, circumstances, such as unforeseen accidents and mayhem, forces some people to retire before they intend to, she advises.
“Therefore, you need to be very serious about planning for retirement,” the licenced pension advisor with responsibility for the JN Individual Retirement Scheme recommends. “Consequently, I suggest that you make it a New Year’s resolution, if you have not already done so. You need to get aggressive about your retirement!”
The year 2017 is the best time to start planning for retirement Ms Smith says, because the greatest obstacle that will prevent some persons from achieving a good retirement is…” time.”
“Think of someone who decides to plan for retirement at age 44 who earns about $800,000 per year. If they decide to put 20 per cent of that sum aside for retirement, earning five per cent per annum on those savings. By the time they reach age 65 they would have accumulated approximately $5.9 million,” she explained.
And, if that same person started to save earlier, Miss Smith stated, she or he, could be earning double that sum at age 65.
“What if that person had started at age 34?” she continued. “That would be ten extra years to plan for their retirement; and they could accumulate more than $11 million, if they were earning the same income and saving the same amount.”
“That’s the big difference,” she says. “You need time in order to accumulate funds for your retirement. “Start now! Don’t wait until it’s too late.”