Now Is The Best Time To Plan For Retirement

While retirement may seem a long way away, time is your best friend - so the sooner you start planning, the better off you will be.

As Albert Einstein said, compounding interest really is the eighth wonder of the world.

"Compound interest occurs when interest gets added to the principal amount invested and then the interest rate applies to the new (larger) principal amount," explains financial planner Lisa Dudson of Acumen. "Over the long term it's incredibly powerful."

So you want to start putting aside money as soon as you can, so you can reap the benefits of compound interest.

First, establish what resources you have to work with. Ask yourself: How much money do I have available to invest? Lisa says you might already have a lump sum squirrelled away, or be able to invest a set amount of your income each month, or you might have an asset you can borrow against for a property investment.

Create a goals-based investment strategy. What kind of lifestyle do you want in retirement and what might it cost you?

"We are living longer, so you might have many years in retirement," says Lisa. "You might want to work until you are older than 65, or you might want to start working part time much earlier than 65."