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4 Reasons to Start Thinking About Retirement at Any Age

1. The Early Bird gets the worm, and the money- According to Bankrate.com, if a person began saving $5,000 a year for retirement in a 401k at the age of 25, and another person did the same thing beginning at the age of 45, the 25 year old would end up with $1.3 million at age 65, while the 45 year old would end up with only $230,000 at age 65. This simple illustration is a powerful testament to the fact that every person should begin saving for retirement immediately. You don't have to contribute half your salary to be effective either. The longer a small amount of money has to grow, the bigger it will become in time.

2. Inflation doesn't look to be slowing down anytime soon- Ever since the Great Depression, inflation has been rising without fail in America. During the 70's and 80's inflation swelled to drastic levels, but even though it has calmed down in recent decades, it never ceases to rise. The amount of money it would take to retire comfortably now will be much higher depending on when you plan to retire. You need to plan ahead for a loftier goal than the bare minimum required to live today.

3. Social Security won't be useful much longer-According to MarketWatch.com, Medicare is only going to be around until 2019 and Social Security is predicted run dry by 2041. With an unprecedented number of baby boomers drawing from Social Security, the average lifespan increasing, and a smaller percentage of money actually going to pay for Social Security, it is not reliable for anyone who plans to retire and live for more than 15 years. In the coming years, every individual is going to be responsible for his/her own financial security after retirement. Begin planning as soon as possible so that you aren't left out when your golden years come around.

4. Taxes and spending are at all-time highs-Earlier this year, the government reported record high tax intake and government spending. Americans have been lulled into paying too many taxes, and as a result are becoming ever more dependent upon the government. Though tax breaks may come and go, as spending increases, so will the burden on the average taxpayer. This includes retirement money. Smart planning can avoid a huge tax penalty when retirement finally comes around. Be sure to talk to an investor or retirement specialist about planning for taxes when it comes to retirement.

Besides planning a 401k or personal IRA, one of the best ways to plan for retirement is to build a side business now that offers residual income in the future. You should never plan to rely on one singular source of income, because all sources can fail, so diversifying your income with a business like an MLM is a smart step when planning for your retirement. Remember the rule: the smallest amount of effort now can yield amazing results in the future!

Learn more about this author, Donald Kicklighter.
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