Retirement-planning
- Suganya Sundaram / 01-Mar-2019
Retirement is very easy to put off for later. When you are young, retirement looks like a
very far-fetched planning. But what if everything doesn’t work out the way you want and
retirement leaves you with no savings.
Retirement should be the best time of your life, when you can relax and enjoy your life by
reaping benefits of what you earn in so many years of hard work. To achieve a worry-free
retired life, here’s why you should plan to plan ahead.
Uncertainty of Social Security and Pension Benefits
While retirement does make you eligible for low-cost medical coverage and monthly benefit checks from Social Security, they most likely won’t be enough to give you the comfortable retirement of your dreams. Your retirement funds will supplement what you receive in Social Security, and provide a safety net should Social Security and medical ever be taken away.
Proper retirement planning is necessary in the event you need to cover any long-term care that you may require later in your life.
Unforeseen Medical Expenses
Your future is not guaranteed, which is why retirement planning is necessary, and once you have a plan in place – stick to it. Uncertainties can come uninformed. If after retirement you are met with an illness of any sort, uncovered by your medical, then this fund will help you cope with future problems.
Medical may not cover every form of care, so your retirement savings may become your safety net to pay for in-home care or a nursing facility.
Average life expectancy has increased
In today’s high tech world people can live longer than expected. Medical advancements have increased so much so that they can even bring you back from dead.
People live on an average up to 80 years. That means saving more and planning for longer. The earlier you begin, the better your chances are for having enough retirement funds to last your entire lifespan.
In short, don’t plan for an average life expectancy — plan for more!
Better start early and plan ahead
That’s right — today. Not tomorrow. It’s incredibly vital that you start planning for retirement early.
You’ll put yourself in the best situation if you start planning for retirement early on. According to your income, accumulating for your retirement may take a decade and if you need a big basket of corpus then you better start now. By starting to invest in your retirement early on in your career, your funds will accumulate and grow over time, leaving you with a substantial enough fund to fulfill your retirement dreams.
Create a Will with your retirement plan
As important it is to create a retirement plan, it is equally important to make sure that you have a successor who will be taking over your retirement corpus in case unforeseen circumstances don’t allow you to enjoy this retirement funds.
Not having legal will in place leave many houses torn apart after you are gone. Don’t let your passing create tiff between families for the money.
Even if you realized you were making a mistake with your retirement planning, it’s always smart to get an objective third party to review your plan and ensure the future you want is the one you’re setting yourself up for financially. That is where our advisors help you follow through for your dreams.
The earlier you begin planning for retirement, the better. Planning for retirement is not easy, but it is extremely important.