If you’re in your teens or early 20s, do you ever think about what your life will look like when you’re in your 60s? It's not an easy topic to face head on. When you’re in the prime of your youth, just beginning to explore everything that life has to offer, thinking about growing old can seem like a depressing waste of your time. That’s time that could be spent on building a successful hustle or just having more fun.

Unfortunately, ignoring a grim reality doesn’t make it go away. Everybody grows older. While you’re having fun building that hustle, you should also be planning your financial future – including retirement.

When the time comes to pass on your hustle to the next generation and stop working, your retirement portfolio should enable you to enjoy your life in financial security, with access to everything you need to maintain your lifestyle.

Building a solid financial foundation with long-term investments

Retirement planning is worth considering sooner rather than later. Many young people decide that they’re going to start saving for retirement only in their 30s, so that they can spend more money on ‘enjoying their youth’ for 10 or 15 years before doing any serious financial planning. After all, you’ll still be saving for 30 years or more, so it won’t make that much difference to the amount you’ll have at retirement, right?

Think again. If you start saving for retirement in your late teens or early 20s when you get your first job, an extra 10–15 years of compounded interest could almost double your retirement payout, compared to someone who saves the same amount in the same investments monthly, but only starts in their 30s.

So, don’t wait another decade. Consult a financial adviser now about retirement investment options best suited to your current age, income and expenses. Let them help you plan your financial goals at various life stages.

Retirement planning solutions: Explore your options

We often make assumptions when we think about retirement. The focus is usually on building a nest egg to cover your lifestyle expenses, but it’s easy to assume that your life will follow a predictable path until you reach that age. In an ideal world you'd settle down with a spouse, buy a home and raise a family, and then retire in perfect health on property that you own, surrounded by your loved ones, who could pitch in when you need help with the problems and infirmities of old age.

Unfortunately, we don’t all live in an ideal world. Some people never marry or have children, others lose their loved ones in tragic circumstances. Some families get torn apart by internal conflict – we can never predict the future, so it’s a good idea to imagine different scenarios when you’re planning your retirement portfolio.

For example, you should try to save enough not only for your living expenses, but also to cover the costs of a retirement home – or even an assisted living facility if you need it.

The case for retirement homes: Companionship and security

Retirement homes and retirement communities are designed to cater to the needs of the elderly and provide a safe, supportive environment. They also offer a variety of living arrangements, according to your budget. Some retirement homes offer private rooms in a single building with shared dining and ablution facilities. Others might provide private flats in an apartment block, while at the more expensive end of the scale, retired people can buy freestanding units in a retirement cluster.

Loneliness is perhaps the biggest challenge that retirees without close family ties face, so the companionship of people of a similar age is a major benefit of retirement communities. Security is another benefit, and many retirement developments insource a range of services to ensure the comfort of residents. These can include medical care, housekeeping, meals, sports, and social activities.

Assisted living alternatives

It’s wise to consider assisted living facilities as another potential option. You may find yourself needing physical help with age-related conditions when you retire – another future possibility you can’t predict. These facilities help residents with daily activities like bathing, dressing, and managing medication, while still allowing you to maintain your independence.

When you’re discussing retirement investment options with your financial adviser, consider the quality of care and standard of amenities that a facility offers, as well as location and costs.

Planning for retirement is about more than just building a nest egg – it's about ensuring that you can live comfortably, regardless of your situation when you retire. By starting your retirement investing early, you can build a portfolio that will enable you to spend your golden years in a retirement community or an assisted living facility if you need to.

Start building your financial security and peace of mind today, and let Nedbank guide you on this journey.