Most people, especially when young, don’t give much heed to retirement planning. People are used to believing in the common saying that translates to things would eventually fall in place by itself. It is good if it does, but you should be prepared if it doesn’t, isn’t it? Considering the volatility of the financial markets and the rising rate of inflation, things are not falling in a place financially for people who planned their retirement a few decades back.
Asking what they feel about retirement planning would help you realize its importance today and the good thing is that you still have time to plan it. There are various financial instruments available today that would help you make-up for the lost time when it comes to retirement planning with little financial discipline, effort and a close watch on your wallet.
Retirement planning is important, and it should not be taken lightly and here are the few reasons why you should start with it yesterday –
Average Life Expectancy Is Rising
The average life expectancy of people has increased in recent years, and it calls for the retirement funds to be larger than it used to be traditionally. In the United States, the average life expectancy is around 80 years, and thus, the retirement funds need to be more than it used to be. You want your retirement funds to span through your entire life and thus, starting saving earlier would rescue you from the financial troubles later on. In other words, plan for above average life span just to be on the safer side.
It’s Not Possible to Work Forever
Well, it just may be possible for some, but let us plan believing that you won’t be working after retirement. As you age, your physical and mental faculties would slow down, and it would start to affect your work. It would lead to issues at your work and possibly, lower revenue as well. In any case, regardless of your profession and ability to work, one should not shy away from saving for their retirement. You do not want to take finance-related stress at seventy as you did in your thirties, right?
Fulfill Your Retirement Goals
Everyone has their secret bucket list they want to fulfill in their life, and it can be buying a house in the countryside after retirement to spend the later part of their life or going on an exotic world tour. It can be taking up a hobby like painting, writing, reading, traveling, or just anything. Regardless of which hobby you choose, along with time, it would involve monetary quotient as well. When you have sufficient retirement funds, you can focus on checking off your bucket list instead of worrying about the finances. A wise man once said live like a pauper today to live like a king tomorrow.
Relying Solely on Pension can be a Risk
Even though you will be eligible for multiple benefits from the government and your workplace when you retire, it won’t be enough. Your pension should work as a supplement for your retirement fund and should not be a big part of it, or it can be quite risky. You need to have a proper retirement planning so that you can pay for long term care costs that your medical insurance might not cover as you grow old.
Give Back to Your Family
When you have a retirement fund, you will be able to provide lavish gifts to your kids and your grandkids. Your retirement will be a great time for you to spend time with your family. With substantial savings, you will be able to plan vacation with them without putting financial pressure on them to pay for everything. You can even chip in if your kids or grandkids need money for college or expanding their business.
The sooner you start planning for retirement, the better position you will be when you actually retire. You can use retirement savings calculator online too help you get an estimate how much money will you need to retire comfortably. Thus, it is essential that you enjoy your life to the fullest but still think about your retirement too. There is no better time than now to start planning your retirement. It is never too late to plan and save enough money to retire without any worries.