Wouldn’t it be amazing? No need to get up early, rush to the traffic, and get stuck in the office from 8 to 5? Plus, the kids are all grown up. You are free to do whatever you want. You can start a new hobby, volunteer, travel, or simply reclaim the days that you can enjoy the cup of your coffee peacefully. Retirement sounds heavenly but the question is, are you financially ready for it?
Here are the reasons why you should start saving for retirement.
This may be the simplest reason one could think, especially if you want to have a luxurious retirement lifestyle. It’s a simple concept really: the earlier you invest, the bigger the savings you can accumulate. Also, when you start early, you can stay focused on your budget, savings, and spending habits. It’s a win-win situation.
Yes, you have religiously paid your social security contributions and made sure you are in the highest bracket of amount contribution because you know it will give you a handsome pension when you retire. BUT, remember, social security is not made to be your sole income generator when you retire. Not to mention that economic fluctuation and government legislation over the course of the year can change the standard, and this can greatly affect your pension. This may and will not be enough, especially if you want to travel around the world after retirement.
Your children at that time may have their own families and you may now have a handful of grandchildren. You want to spend time with them as much as possible and be a part of their lives because you certainly don’t know when your time will run out. However, you do not want to burden your children by living with them and still be a part of their household budget. Not because your children do not want to have around but because you wouldn’t want to be someone they are obligated to support. You simply want to live on your own, maintain your own household and visit them.
You have missed the days that instead of enjoying your youth; you had to rush to the subway station and marathon with the traffic just to get to work on time. Your Saturdays that were supposed to be a date night with your wife became weekend overtime. You had to work hard to get by. But after retiring, you’ll have a chance to reclaim your lost youth. Whether you would want to jump from a helicopter at the age of 90 or just simply want to live by the lake and wake up late, you need money to do it. So ask yourself, “What is my goal after retirement?” Your investment will have a great impact on it.
Let’s face it — companies nowadays are staying away from liabilities. Not all companies offer a great retirement plan. Yes, they still can give you that but not the traditional way. Instead, they are offering a benefit pension plan in exchange for a specific contribution pension plan that’s more detailed. You need to choose wisely and do it early.
Despite the fact that the nation is eating a ton of preservatives and can likely shorten the human lifespan due to health risks, the average lifespan still reaches 78 – 79 years. That’s amazing! You can live longer and enjoy more of your remaining life but living longer doesn’t secure your sound health. The unhealthy eating and working too hard in your youth will take a toll when you get older, and this will require a need for healthcare. If you have set aside money for your retirement, you can use that money for your health care.
There are many other reasons for you to save early for your retirement. Just keep in mind that in retiring you must enjoy and live your life to the fullest so you won’t have any regrets in the end. Let the race to investing for your retirement start today.