The definition of retirement or retirement that everyone mentions is to stop working. However, retirement must have a purpose behind it, when you retire without a purpose it is essentially as good as not retiring.
They all mention that they want to retire young. But, the question is what is your purpose when you stop working? Is it traveling? spend more time with your friends? do a hobby? Aren't we already traveling and enjoying life while we are working?
Every year we plan to go on a trip for Christmas, summer vacation or the weekend trip, but have we ever sat down to plan our longest vacation?
"Retirement is the longest vacation of your life."
Remember, if you have a purpose during your retreat stage, the retreat becomes more fulfilling and has deeper meaning. The perfect retirement is when you have enough income and activities to fulfill your life with satisfaction in your later years.
In this post I will give you 3 reasons why it is very important to plan your retirement as soon as possible.
Reason #1. people live longer
Imagine, around 100 years ago it was the first commercial flight at that time life expectancy was only 38.8 years, today it is 76.71 years.
In addition, it is said that generations born after 2030 will live on average more than 90 years, the increase in the average age has skyrocketed in recent decades due to technological advances and genetics.
With the increase in the average age, comes more health problems and therefore a greater need to generate a larger fund to ensure a peaceful retirement.
Our retirement is expected to last just over half of the years we work , for example, a person who worked from age 20 to age 60 is expected to be in retirement for around 20 years or more.
Have you ever wondered how many years you have been working and how much money you have saved to this day to maintain your lifestyle in retirement?
Reason #2. You never know when you will stop working
Let us remember that there are two types of withdrawal, voluntary withdrawal and involuntary withdrawal:
Voluntary retirement is a happy situation, because you as an individual have the opportunity to decide how you want to spend your life with a meaningful purpose when you retire.
Involuntary retirement is something that cannot be controlled. Most of the time it happens due to an illness or accident where you are physically unable to continue working and you need an income to maintain your quality of life.
To be honest, you can always prepare for voluntary withdrawal, but you can't help but be caught off guard by involuntary withdrawal . Therefore, it is your responsibility to ensure that you are covered for at least that. Approach your main financial advisor and tell him that you want to prepare for an involuntary retirement so that together you can develop a strategic plan.
Reason #3. Don't be a burden to your family
If you don't start planning for retirement, it could become your children's responsibility to take care of you.
And some will say "Hey John Labunski, but shouldn't my children take care of me?"
First of all, I understand that you have invested a lot of money in your children and you consider that they should take care of you because you took care of them.
However, you also have to remember that they will have a responsibility to take care of their family. So instead of being a burden to them, why not plan your retirement? And of course if they can take care of you, great, you'll have some extra money to enjoy.
But, if they can't take care of you, at least at that age where you can't physically work anymore, you'll have money so you won't be a burden to them.
We have to remember that love only lasts until you don't have money problems. Once you start having problems with money, even your loved ones become a burden.
All people in the world fall into 4 categories:
Category #1. Luxuries
Category #2. Comfort
Category #3. Poverty
Category #4. Charity
Now, let's imagine that a family is in the comfortable category.
This family stays in a comfortable position when one person is working. If this working person suddenly loses his or her ability to earn an income, her family usually falls directly into category 4 charity and beneficence by other family members.
To prevent the family from falling in category, we immediately need to put a money “bomb”, because if there is no person working, we need to have money working.
This process is called income protection.
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