Have you Saved Enough For Retirement?
Have you saved enough for retirement? I read this question and thought that how many people actually think about it, I have not yet! In young age we all are busy in earning money but less attention is paid to saving for future. Whenever somebody advises about future saving we take it for granted but reality is that after retirement it becomes difficult to manage financial life. Saving or planning does not mean that you should not enjoy life in fact you can enjoy life with full benefits while saving too, this is only a matter of planning.
Financial and social matters are specially very crucial after retirement. If you are among those blessed ones who have done some planning prior to retirement than your retirement can be the happiest day of your life otherwise for many people it is the saddest day of their life.
Not only you need to know how much you should save and how to save it but your concern should also have to be on estimating inflation rates, economic and environmental changes that can occur in future. Retirement planning is therefore very much like a contingency plan which help us in meeting unexpected future needs.
Most people think that planning for retirement means planning about finances but actually this is much more than just money that matters when you are old or retired. Financial planning is only one aspect of the whole planning that will ensure satisfaction and peace in future life.
Social Security is an important concern of retirement and old age. Loneliness and sudden social loss can cause depression, anxiety, phobias and other mental problems. Social security cannot be achieved by paying money but it needs love, patience and sensibility on your part through out your life. Your kids can become your best pal if you know how to do it. In many cases when parents get retired children are in their professional career and are often married too; if parents had developed cordial strong relationship with them they will become their friends in retired life otherwise they do not give it a damn whether parents are alone or in a company.
Financial Security can be achieved by many methods, you just need to know that how much and in what ways you can save finances for retired life. Now you need to answer following questions before planning finances.
How much should I save for retirement?
This depends on your lifestyle, physical, mental health and your countries economic and socio-economic situation. If you are living luxury life, it will be difficult for you to change your habits after retirement its better to cut some costs otherwise you will be in grave trouble. With simple lifestyle in young age you can have prosperous tomorrow but that does not mean living in a poor state. Frugal living can even be full of fun if you know how to enjoy life and what is the real beauty of life. On the other hand physical and mental health should also have to be taken into account before making decision about savings. Better option is to avoid all those things which cause health problems in old age: eating junk food in moderation is not very risky but excessive intake of fast food and eating out can be risky for your pocket as well as for your health; smoking too is a great threat and can cause cancer, cardiovascular diseases and other respiratory problems; too much use of medicines can also be harmful in young age because once you develop habit of taking medicines for every little problem your body get accustomed to its use and you can not live without them. Its better to have everything in moderation than to take risks for old age. Third and another important concern in planning for retirement is understanding the economic situation of the country or the globe as a whole. Due to continuous increase in inflation worldwide one can not believe any reduction in prices so better take all of these things in mind before planning about how much to save for retired life.
Where to invest money?
There are numerous ways in which you can save money and it depends o where you live and how you want to get retirement benefits. 401(k) and IRA are two possible and easy ways of investing money but their are other ways too it depends on your estimation of retirement benefits that how and where you invest money.
When should I start saving?
The best way is to start as early as possible. Do not waste time in thinking that I am not still married or I have enough time to think about saving or investing in some company for retirement. The most positive approach is to start saving early and stick to your plan, be consistent and keep retirement saving plan as simple as possible. Rather than just saving money invest in some money growing policy. Keep an eye on the economic state of the globe and invest accordingly.
When will I get retired?
If you know about the retirement criteria of the company where you are employed, you can plan easily about how much to save each year, month or week. The time limit you have until you will get retired will help in understanding, forecasting and calculating savings. Inflation rates increase each year so you should know in advance about the time in which you have to fulfill your saving goal.
Physical Well being needs your knowledge of your body and treating it in the best possible manner. In old age disability, mental retardation, hearing and vision loss and other physical problems are common but you can at least indulge in healthy activities in order to ensure future health. Though future is unseen but we can predict it and can avoid unhealthy activities which are a risk to physical well being. Taking too much stress in young age, over exposure to sun rays, eating unhealthy and unhygienic food, sleeping less and working for long time, malnutrition, and lack of physical activity can cause fatal problems in old age. To avoid diseases which are dangerous for health and finances keep your life simple in young age and you will see positive results in future.