Why Do I Need Income After I Retire?
Need Income After I Retire: Simply because your professional life ceases to exist not your ‘own’ life! You need income to support your life after retirement.
“Retirement is like a long vacation in Las Vegas. The goal is to enjoy it the fullest, but not so fully that you run out of money”- Jonathan Clements
The above quote is indeed correct!People these days are so engrossed in the day to day activities of life that they forget to plan for their retirement. But retirement planning is a vital step which you should take if you want to have a financially independent life after retirement.
Early retirement planning is critical as it takes many years to accumulate the necessary funds to live a comfortable life when you no longer get a fixed salary in your hand every month.
Investing early in your working life will allow funds to accumulate and grow so that you have substantial resources for retirement years.The following are the reasons for early retirement planning:
To spend the retirement as you always wanted
Retirement is the best time to pursue all your passions which you always wanted to. The way you want to spend your post-retirement life wholly depends on the amount of money you have saved.
To transform your dreams into reality, you have to be financially sound. You need income source after you retire either through the way of your savings or the investments.
To take care of unforeseen medical emergencies
With growing age come numerous health issues. Affording the cost of long-term care can be very expensive.When you are not working, your retirement savings will help to ensure that you are well cared for. Hence start with your savings to prepare yourself for any medical emergency that may arise.
To avoid post-retirement work pressure
If you do not want to keep working after your retirement, then you should start with your retirement planning now. The people who do not have a retirement plan in place often have to keep working to meet their expenses. Your retirement income will play an important role in avoiding such situations.
To help you in estate planning
Your retirement income may help contribute to your children lives, either through aiding their education or passing on a portion of your assets after your death. If you have a sound retirement income, you can get on board with the estate planning idea.
How to Plan for Your Retirement?
If you want to retire peacefully and share the same thinking as mentioned above, start investing now. The earlier you start, more likely that you will be on track with meeting the goals in your list.
However,starting late might need you to sacrifice or adjust yourself to your post-retirement life. At the same time,the amount that you invest and add each period will depend upon how early you start saving.
Hence traditional saving insurance plans are the best choice when it comes to retirement planning. Such insurance plans help to grow your wealth and promise to protect our money.Such insurance plans aim to protect you and your family in any unforeseen situation. In case, the policyholder dies, his family receives the lump sum amount which ensures their financial security in your absence.
Also, these plans come with tax benefits. Thus you can reduce your taxable income.
Throughout your professional life, you have always been the ‘giver’ and not the ‘taker’. So, make sure you continue doing so even after retirement. Instead of depending on your children for money, take charge of your life!
If you feel that starting with your retirement planning in the twenties is too early, think again! Starting early will help you achieve your retirement goals smoothly.
It will not only help you to develop good retirement planning habits but also give you more time to identify the short falls in achieving your goal.