Are You Prepared For Retirement?
Aging is a dreaded consequence of time and although we will all reach the inevitable, there is always one thing to look forward to- retirement. Time to knock off from the 9-5 and truly enjoy the life you have built for yourself. We all imagine a retirement full of leisure and freedom, however, this does not magically occur, you have to create your future by accumulating a retirement fund!
A huge percentage of people do not save enough for retirement, the most common cause is beginning to save too late in life. Many will not prioritize their retirement until they are as old as 50 and realise that time is quickly catching up with them.
Due to increasing life expectancy, statistically you could be retired for more than 25 years. Many experts claim that you will need an average of $350,000 to live comfortably during these years. Considering this figure it is a lot easier to reach your retirement goals by beginning your fund at the age of 25 rather than 50. Keep in mind that the recommended retirement fund will differ from person to person due to a number of factors. See how much you could save for retirement by using this helpful tool.
Failing to save a retirement fund can have a negative impact on your retirement, the most concerning being:
You could be broke
You can control how much you save but you cannot control what will happen to you with age. Your future is completely unpredictable and odds are that you will experience some form of adversity in later life, whether it be divorce, widowhood or various health problems. If your plan is to rely on a pension keep in mind that the current rate for a married/ defacto individual is $295.97 (net) per week!
Decreased quality of life
We all love to live in the moment, but let’s live in the moment and also within our means. Saving your money for retirement will increase your quality of life during old age. Retirement is your last opportunity to tick everything off your bucket list without the demands of your career or children hanging off your shoulders! And the best part? The more you save, the earlier you can retire. Without savings your retirement could wind up being more stressful than your younger years and you may regret the things you were unable to do due to financial restrictions.
So why do so many of us choose not to or save minimal amounts?
Common reasons include spending on other things, most commonly children’s education and future. While your children’s future is important, it is vital that you have a balance to secure your own future as well. After all, if you are struggling during retirement it may very well be your children that end up paying your costly medical and caregiving bills!