THE-LIFESTYLE-EDIT-RETIREMENT-Retirement is that thing that feels like miles way, doesn’t it. I remember starting the first job that offered a decent retirement package and leaving the letter outlining the provisions to gather dust in a draw somewhere. At the better end of my 20s, the idea of preparing for retirement felt like something people in their forties should worry about.

It was only when I decided to seek financial advice in preparation to buy a house that it dawned on me that it’s never too early to get on the right track. In fact, the sooner you start thinking about it, the better. At the start of your career, you may feel like bills and debts swallow up the majority of what you earn but your twenties is the time to lay the foundation.

Make a plan: First things first, sit and make a plan. Look at how much you earn after tax and monitor your spending habits. Are there areas you can afford to cut back? Is it really necessary for you to go out so many times each week? Once you start identifying where you can claw back some money, put this towards an emergency fund. You’re used to not having it at the end of the month so rather than wasting it away, put it to good use in savings. That way, in the case of a surprise redundancy or emergency, you know you’ll be covered.

Open a retirement account: Most employers will have a retirement fund. Find out whether yours offers one and make sure you’re a part of it as soon as you qualify. Experts argue that putting even 5 per cent of your salary into a retirement fund at this stage will hold you in good stead. If your employer doesn’t offer one, set up ICERs for your retirement savings. Not only will you avoid paying tax on it, but you’ll also receive interest on the funds.

Stay healthy: Ensuring you have the best quality of life in your later years doesn’t just mean putting money aside. It’s just as important to keep fit and healthy. Taking care of yourself in your twenties and thirties will put you on the right path for later life.

Buy a home: Yes, it may feel like a big outlay at a time where all you want to do is go out and enjoy but there’s a lot to be said for buying a home. Be clever and by the most affordable home you can to allow you to make the biggest monthly repayments. The aim to own as much quickly own as much of your home as possible. Just think: if you bought a house at 28 with a twenty-five year mortgage, you would have paid it all off before retirement avoiding the burden of using your pension to pay a mortgage or rent.

The reality is that the above is a lot harder than it sounds but those that make the best financial decisions now will be able to sit back and relax when it counts.

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