Perhaps one of the most important and maybe the most difficult task facing today’s adult workers is developing and implementing a financial plan for retirement. Unfortunately, the difficulty is not always where the money will come from, but whether the adult workers will implement a financial plan for retirement.
The current public debate concerning the changes in the structure of the social security system, clearly indicates that most American adults show little or no interest in retirement planning, until it is too late. Many older workers have discovered in the past decade that it is not wise to rely solely on an employer’s retirement plan, or even the federal government’s social security program.
Every working American, particularly those who have reached middle age and who do not have a definitive retirement plan – should look at retirement planning the same way they must look at buying a home. Without a plan, and sometimes without a definite and sometimes harsh saving schedule, those hopes, and dreams just aren’t going to happen. That means that your retirement years, instead of being carefree and enjoyable, could be a harsh reality of finding ways to survive when you can no longer work. Many older workers at 65 or even 70 years old find a way to ease into retirement. They continue working part time in their pre-retirement profession, or they find part time employment at minimum wage jobs, wherever they can.
However, the time eventually comes when it’s not possible to continue making sufficient income to support ourselves. Age and health catch up with most people and full-time retirement becomes a reality whether we’re ready or not. For those who did not develop and implement a retirement plan, those years can be anything but what they should be.
One of the simplest financial plans for retirement could be buying a home and paying off the mortgage before retirement. Rarely would it be possible for a retiree to live off social security income and afford to pay normal house or apartment rental rates and cover all other retirement expenses with that limited income. However, if a retiree owns their own home, income from social security or part time employment would come closer to covering expenses when housing costs are taken out of the picture.
While the simplest plan might not provide for a carefree retirement, it could easily make the difference between a pleasant retirement and an unhappy one. However, for middle aged workers it is not too late to develop and implement some form of savings program to support their retirement years. And remember, that the earlier those plans are implemented, economic growth and interest will help boost your nest egg and make it a workable retirement plan.
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