By CAPosts 22 November, 2020 - 11:20am 35 views
MEXICO CITY.- Regardless of the activity that people carry out, making the decision of how to reach retirement age and having a financial plan for that moment is important to ensure a decent quality of life. The recommended age to start saving for retirement is 25 years ; however, most people find limitations or simply do not know how to achieve it.
The Mexican Association of Afores (Amafore) indicates in its survey "Savings and the Future, how do young people experience retirement?" that only 38% of the young population has an Afore account.
The same survey indicates that 33% of young people do not save, mainly because they consider their income insufficient and, in addition, among the percentage of those who do save, 48% use informal means, such as “guardaditos” and piggy banks. For these reasons, the youngest generation of workers, the centennials, must begin to organize their finances and prepare a plan for their retirement, since they are at the ideal moment for it.
To guide the youngest people on this path and help them prepare for their future, M2Crowd , a collective real estate funding platform, shares the following recommendations:
Get started as soon as possible . As we mentioned, although the ideal is to start at age 25, starting an investment plan before or after this age is not going to limit or harm you, because the important thing is to draw up a plan that defines how much you want to obtain, the age at which you you will withdraw and the ideal contributions to achieve it. Remember that the money destined for your retirement account will grow and generate higher profits over time. Set aside 20% of your income : Financial estimates usually consider ideal to save 10% of income when you are between 20 and 30 years; From this age, ideally you should increase this percentage to 20%, to ensure a sufficient amount for retirement. Choose an Afore : Afores are private financial institutions in charge of managing funds for the retirement of workers. In them a percentage of their income is deposited bimonthly by the worker, the employer and the State, when they are on the payroll; independent workers must contribute voluntarily. This money generates returns and increases the balance over time. Investigate the different Afores and their rate of return on the CONSAR portal, compare their benefits and choose the one that best suits your possibilities and interests. Invest your money . Saving by itself is not enough to ensure your future, since just saving your money will not protect you against changes such as inflation, for example. Start investing to put your money to work in different financial instruments. Research CETES, stocks, funds and other options at your fingertips to generate long-term returns. Contribute steadily . Both in the case of your afore and in investments, it is very important that your contributions are regular in order to reach your savings goal. Form a habit to fix an amount, to cover your needs and expenses with the rest of your income. Remember that your voluntary savings may be tax deductible. Diversify your investments . To add an extra level of protection to your money, diversify your investments between different sectors and instruments. Each option has different rates of return and risk, which you must balance to have a guaranteed profit. Remember to continue exploring options as you progress in your savings and investment project to take advantage of opportunities to grow your money.
Financial freedom is a possible goal and to maintain it until old age or at the time of retirement as well. Maintaining healthy financial habits and growing income in various investment avenues help you achieve this. The sooner you start and the more consistent you are, the better.
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