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Is it too early to plan for retirement?

Is it too early to plan for retirement?. Let us understand when to start planning with a brief story of these two friends. Mr. WhyNow. Mr. RightNow. Mr. WhyNow. Age 25 Years. Works in a Tech Company. Earns good salary. Likes to spend on a great lifestyle.

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Is it too early to plan for retirement?

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  1. Is it too early to plan for retirement?

  2. Let us understand when to start planning with a brief story of these two friends Mr. WhyNow Mr. RightNow

  3. Mr. WhyNow Age 25 Years Works in a Tech Company Earns good salary Likes to spend on a great lifestyle Believes in living life king-size TODAY Postpones decision to start saving for retirement Finally at 35 he starts saving Rs. 5000 pm and continues investing till he retires at 58

  4. Mr. RightNow Age 25 Years Matches his colleague for professional ability Earns similar salary He too likes to spend on a great lifestyle But also believes in securing his golden years Decides to set aside Rs.5000 right away every month for only 10 years From age 35, stops investing further and enjoys his full income

  5. Position at age 58 Calculated @ 10% compounded annually Mr. WhyNow started saving from age 35 and kept doing so till he retired at age 58. In all he saved Rs. 13,80,000 and got maturity of Rs. 52,49,840 Mr. RightNow started saving from age 25 and stopped it from age 35. In all he saved Rs. 6,60,000 and got a maturity of Rs.99,56,020 !!!

  6. Moral of the story If You Wait . . . You Lose Delaying retirement savings can deprive you from realizing your retirement dreams !

  7. Top reasons to startRETIREMENT PLANNING at an early age Starting early enables to build a big corpus with small savings Money multiplies exponentially if given enough time to grow due to power of compounding Your earning capacity is highest at young age. Hence setting aside a small amount will not impact you significantly Your life insurance premiums are very low at young age Your physical fitness allows you to purchase any type of policy for any amount of sum assured

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