Will You Choose Your Retirement Option?
If you do not have enough money when you are ready to retire you will have 3 options. One, you will have to keep working. Two, cut back on your lifestyle. Three, rely upon your loved ones for financial support. Once you are ready to retire will you honestly be delighted to pick any of those options? Most likely, not.
To avoid being forced to select a retirement option that you will dread, take charge of your finances sooner than later.
Retirement Is Expensive
Many people have this disconnect about retirement. Many people think that once they retire their expenses stop or decrease. Retirement expenses do not decrease but may actually increase.
Have you seen the price of food or gasoline lately? Have you paid your auto or home insurance premiums lately? Have you ever heard of real estate taxes decreasing? Do you think healthcare costs, nursing home costs, prescription drugs or long-term care costs will decrease in the future? Remember that when you retire you will be older so it will cost you more to keep you together.
All You Have Is Time
If you are in your thirties you have about 480 months left until you are in your seventies. Therefore you have 480 months left to put enough money away to carry you through retirement. Will 480 months be enough time for you to get ready for your retirement?
Seventy-five percent of employees between age forty and fifty have less than $50,000 in retirement savings, are you one of those individuals? Can you turn that around?
Preparing for your retirement is your choice; you can plan the easy way or the hard way. The easiest way to get ready for retirement is to sock away as much money as you possibly can afford to throughout your working years.
The hard way is to continue to convince yourself that you will start investing later. The problem with that is that later never comes. Do yourself a favor, don’t put off planning for retirement, it comes so fast. If you ignore the fact that you will eventually reach retirement age you may be spending your retirement working, cutting back or relying on others.
Today Vs Tomorrow
Individuals retiring today may be able to rely upon social security and lifelong company pensions. But individuals who are years away from retirement will not be able to rely on social security and pensions are obsolete.
Younger workers will have to determine their own financial destiny. The only money that will be at retirement for younger workers will be the money they sent ahead. Your retirement is your responsibility. The type of retirement lifestyle you will have is all up to you.