With the cost of retirement getting higher and higher, investing as early as possible will become inevitable. What Buffett said still seems to make sense now. If you know how much money a person needs for retirement now, then it will not be surprising.

Why you need to start investing early.

Now that the birth rate of the new population is declining, the traditional way of providing for the elderly is for office workers to pay pensions to support the current elderly.

To put it simply, the pensions paid by those born in the 1980s and 1990s are used by the current retirees born in the 1950s; and when those born in the 80s and 90s retire, they may be supported by the pensions paid by those born in the 2020s and 2030s.

But the trend we see now is that the post-80s and post-90s generations have the largest population, the post-00s generation is smaller than the post-90s generation, and the post-10s generation is smaller than the post-00s generation.

It is very likely that there are fewer people born in the 20s than those born in the 10s.

It used to be that 3 working people could support an old person, but in the future it may be 1-2 working people that can support an old person.

The pressure can be imagined.

Then let’s take a look, how much does it cost for a person to support himself in old age?

Previously, a certain treasure and a fund company conducted a questionnaire: How much money do you think you can save to meet your retirement life?

The average number given by most people is 1.5 million.

Is 1.5 million enough?

The answer is that it only covers the expenses of third-tier cities. For example, in a third-tier city, the per capita disposable income of urban residents in 2020 is about 40,000 yuan.

If that 1.5 million is invested and managed well, 50,000 to 70,000 yuan can be withdrawn from the income every year, which can barely cover the expenses of ordinary people. However, if it is transferred to first- or second-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, it will not be enough because the consumption level is higher

.

Therefore, in the current context where high-rise buildings are being built and people have to rely on themselves for retirement, investing as early as possible will become inevitable for future wealth appreciation. Investing as early as possible here does not entirely refer to financial investment, but also includes self-investment.