Better late than never – because when it comes to when to start thinking about retirement, there’s no such thing as “too early.” Learn five reasons why there’s never a better time than now.
Better late than never – because when it comes to when to start thinking about retirement, there’s no such thing as “too early .” Learn five reasons why there’s never a better time than now.
If you’re in your 20s, 30s, or even 40s, retirement may seem a long way off. Does that mean you have time to save for later? Unfortunately, unless you win the lottery (and we discussed why that’s not necessarily the best plan for the future in the article: To Win, You Have to… Invest ), saving for retirement will take more than a few years. Below, you’ll find 5 reasons that might convince you that now is the perfect time to start thinking about your financial future.
Poles are living longer and longer. The average woman lives to 81 and the average man to 73, meaning many of us will spend a significant portion of our lives in retirement. What does this mean for you? Think about those years – do you want to spend them stress-free, enjoying well-deserved rest, having the funds for any amenities you might need (like rehabilitation or help with shopping or cleaning), or worrying about having enough for everyday expenses? The earlier you start saving and investing, the more comfortable your retirement years will be.
The reality you need to be prepared for is a low replacement rate, which is the percentage of your salary you’ll receive after retirement. Currently, it’s around 45%, and future projections are even more alarming – it could drop to just 25% by 2050. This means that if you earn PLN 4,000 today, you’ll receive around PLN 1,000 in retirement . Will this amount be enough for a comfortable, and above all, peaceful, life?
Think you don’t have enough to save for retirement? The good news is that when it comes to investing, time is your greatest ally, not money . Even small amounts invested regularly can grow into significant capital over time thanks to the effect of compound interest . Think of it as a snowball that gets bigger the longer it rolls.
Does the prospect of working longer not entice you? Well, it turns out that increasing your ZUS pension will only be possible by extending your employment history, and that requires working until the age of seventy.
However, you don’t have to wait for the government to set a retirement age for you. Through long-term financial planning and investing, many people are choosing the path to early retirement, achieving financial independence long before they reach the statutory retirement age .
Did you know that there are ways to reduce taxes on investment gains that are not only fully legal but will also help you build your retirement capital? Programs like IKE and IKZE allow you to save for the future while minimizing the tax burden resulting from capital gains tax (commonly called the “Belka tax”), meaning more money for your needs.
Take matters into your own hands and manage your retirement capital in two ways: by saving and by investing your savings. You can do this using the Mooninvest platform , which lets you invest in ETFs without the need for specialized knowledge, investment experience, or large savings.
How does it work?
1. You set a goal for your investment that will motivate you, e.g. retirement
2. You set up a free account
3. You deposit the amount of your choice
4. And that’s it – you’ve become an investor!
This way, you become independent from the Social Insurance Institution (ZUS) and, with the support of an experienced partner, you can make your own decisions about your retirement. You can read more about the advantages of investing with Mooninvest in the ” Benefits ” section.
