What do you see yourself doing in Retirement?

Would you like a few nice holidays a year? Would you expect a good standard of living?
Would you like to help your children or grandchildren in times of need? No doubt there are plenty of things to do with your money now and you may think that waiting a few years to start providing for your pension will not make much difference. THINK AGAIN
The longer you delay starting a pension the more you will have to pay to build up a reasonable fund. The longer you wait the greater the increase in contributions.
Compound interest makes a huge difference. The longer your money can grow the better.
Look at these two examples.
Tom pays into a pension fund for ten years starting at age 21 paying just US$1,500 P.A.
After 10 years he will have paid US$15,000 contributions which, growing at an average rate of 7% would equate to a retirement account of US$332,065 at age 70.
This presumes he stops paying after 10 years and makes no more contributions.
Paul puts off saving for his retirement until the age of 30 and had to save US$1,500 P.A,
For 40 years to reach a retirement account of a similar value to Tom's.
Total contributions would be USD$60,000 compounded at 7% providing a retirement account of USD320, 414.
Because he delayed Paul has to pay for an extra 30 years in this example and his account still falls short of the ten year payment of Tom's account
Can you afford the delay?
Its worth looking at a further two examples.
Marcus O'Sullivan is 25 years old and enjoys working overseas with an international accountancy firm based in Bangkok. He plans to retire at 55 and is aiming to have a good enough pension to enjoy his retirement with few financial worries. He has plans for three big holidays a year and a lively social life when he retires. Marcus has started contributing US$200. per month which he indexed at 5% p.a. to increase in line with inflation. His policy will run for 30 years and at the end of this period his fund value assuming a net rate of return of 10% is US$540,928
Chris Bryans is 40 and hasn't yet organized his pension. He always put it off, preferring to spend the money he had for his current/present plans and only saving for short term needs. He now starts thinking about his retirement and the money he will need to accumulate to have a worry free retirement. He invests US$500 per month also indexing at 5% to increase in line with inflation. He plans to retire at 60. His policy will run for 20 years and at the end of this period his fund value assuming a net rate of return of 10% p.a. US$438,608.
It's a simple message really. Leaving your retirement planning until later can leave a substantial shortfall to your pension account and mark a significant increase in contributions required to achieve a livable pension. .
One good reason for delay in your own mind can be eliminated. Most reputable providers recognize that internationally mobile employees can run into problems when companies make employees redundant.
Arrangement can easily be made to take a break from contributions when you finances need it most and when you regain employment you can start up again.
Most of these plans are designed to be flexible. As your circumstances change these retirement plans can change with you.
Retirement is potentially the longest holiday of our lives. With today's average life expectancy increasing we can estimate a retirement of 10 or 15 years if not longer.
We also know that in retirement, money is not everything. But as Bob Hope says "It will do until everything comes along".