Retirement Planning: Is Age 35 Too Late to Start?

Given the ongoing uncertain outlook of the economy, the concept of “Retirement Planning” often feels like a luxury. However, with rising inflation and the shifting nature of traditional pensions, securing your financial future is no longer optional—it is a necessity.

Financial experts suggest specific milestones based on your annual salary. These benchmarks act as a “health check” for your savings. If you aren’t here yet, don’t panic; use these as goals to strive for:

Many of our users ask: “I am 35 years old and haven’t saved a rupee for retirement. Is it too late?” The short answer is no, but the time to act is now.

The Retirement Roadmap: Where Should You Be?

1. By Age 35: You should ideally have 1 to 1.5 times your annual salary saved.
2. By Age 50: Your nest egg should grow to 3.5 to 5.5 times your annual salary.
3. By Age 60: As you approach retirement, aim for 6 to 11 times your annual income to ensure a comfortable lifestyle.

The 15% Rule: Your Path to Financial Freedom

The most effective way to reach these milestones is through consistency. Experts recommend saving at least 15% of your total income every year. While this may seem difficult with the rising cost of living, small adjustments today lead to massive results tomorrow.

How to Catch Up If You’re Behind

If you are starting late or are currently behind these numbers, here are three actionable steps you can take today:

Incremental Increases: Don’t try to save 15% immediately if it’s not possible. Start with 5% and increase it by 1-2% every time you get a salary hike or a bonus.

Diversify Your Investments: Don’t let your money sit idle in a standard bank account where inflation eats its value. Consider diversifying a budget—even starting with PKR 100,000—into assets like:

Mutual Funds (Shariah Compliant): For professional management and better returns than savings accounts.

Gold: A traditional and effective hedge against rupee devaluation.

Stocks & Prize Bonds: For long-term growth and liquidity.

Cut Non-Essential Costs: Review your monthly expenses. Redirecting “leaked” money from luxury subscriptions or frequent dining out toward your retirement account can make a significant difference over 20 years.

The Bottom Line

Retirement isn’t an event that happens when you turn 60; it is the cumulative result of the decisions you make today. Whether you are a salaried professional or a small business owner, the goal must be to make smart financial choices for a better tomorrow.

What about you? Have you started your retirement journey? Let us know in the comments below, or explore our guides on Mutual Funds and Gold investment to get started!