Why Should You Not Delay Your Retirement Investment Plans?

If you plan to retire stress-free without having to depend on your children or grandchildren then start planning now! Most of us want to live every moment to the fullest and why shouldn’t we? But there has to be the right balance between today and tomorrow. Don’t let your tomorrow suffer because you are living a life with a care-free attitude today, instead start planning immediately. So, if you want to enjoy your retirement, you should not delay your retirement investments and start off while you are still young, here’s why.
1. Long-term investments
If you start investing in your 20s with an aim to retire with a good chunk of money, you can plan long-term investments that you won’t need for a long period of time. For instance, if you plan to invest in mutual funds, fixed deposits, etc. early in your life, you can lock that amount for a longer duration without having to withdraw it before maturity. If you start the same plans in your 40s you will have many financial obligations that may force you to withdraw before reaching your goals.
2. How delay can affect your retirement investment planning
Age Investment amount  in SIP (monthly) Returns Retirement at 60
25 5000 12% p.a 3.22 Cr INR
35 10000 12% p.a 1.88 Cr INR
45 15000 12% p.a ₹74.94 Lac INR
As you can observe, even with the higher amount of investments the corpus amount that you would get, is decreasing. This is the reason why you must begin investing for your retirement early in your life. As the age increases, the value of money declines as the inflation rate sets in. This eventually negatively impacts your retirement corpus. So, it is advised to start retirement investments while you are still young.
3. Your risk appetite
Investing in stocks with higher risk is suitable when you are still young. As you can change your investment portfolio to adjust the risk when faced with market risks. With time you should move your investment portfolio to safer havens as retirement approaches. If you start investing at a later age you will not be able to invest in risky portfolios. The higher risks also mean higher earnings which are best earned when young.
4. Insurance plans
Health and Insurance plans are a must considering the soaring medical expenses and the importance of giving your family a secured life even in your absence. The premium of these plans will be lower if you plan in your 20s as compared to planning in your 30s or 40s. This way you end up paying lower premiums, secure your family’s financial health, and still manage to set aside a substantial portion for your retirement. Paying 10,000 INR right from the age of 25 against your insurance plans is better than paying 40,000 INR in your 30s or 40s.
So, these are some interesting reasons that you must consider when you plan for your retirement investments. It is best to start while you are still young.