5 Reasons Why You Should Start Focusing On Your Retirement Plan Now

why you should start focusing on your retirement plan now

Written by Brai

Abdulganiyu Ibraheem otherwise known as Brai is a mass communication student from Ahmadu Bello University Zaria. He developed an interest in writing ever since he was in high school and hopes to be an advert content creator working in a manufacturing company. Brai is also a fashion designer whose optimism is high in owning a big fashion designing house, sewing different kinds of cloth for men and women

July 12, 2021

A lot of retirees have gone bankrupt or insolvent not because they receive little or no pension at the end of their service at work, but because they failed to make the best retirement plans ahead of when they retire. To avoid the mistake made by other retirees, I decided to wrap my finger around my pen to put words into writing which will provide you with more benefits over other retirees.

But before I take you on a ride to on the main topic, I will like to remind you what it means to retire.

What Is Retirement?

According to Merriam Webster Dictionary, retirement is ‘the period after you have permanently stopped your job or profession’. This means to pull out or withdraw from work to enjoy the good life and start living your dreams, and also to involve in a life well deserved rest after years of back-breaking work. So now tell me, if you haven’t adequately planned against that time, how would you stand a chance to rest when is time for it?

You would probably be forced to go labouring to meet up with your demands. However, this is why you need to plan ahead.

What Is Retirement Planning?

Retirement planning is the financial strategies of saving, investing and ultimately the distribution of money meant to sustain one’s self during retirement. It is also the financial strategies by setting aside enough money while in service or the middle of your career which you can actualize your goals with after retirement.

When Is The Best Time To Start Planning For Retirement?

The earlier, the better. It is advisable you start making retirement plans right from the day you receive your first paycheck because it gives you enough room and the opportunity to have better planning when you retire.

Moreso, it enables enough accumulation of money before you get to leave service.

Why You Should Start Focusing On Your Retirement Plan Now!

1. So As Not To Rely On Your Pension

Most employees today or company seems to forget their about employers when they retire from work leaving lots of retirees in shabby condition because they rely only on the stipends from their employers. But when you choose to start saving for your retirement now, your financial freedom account begins to grow. Hence you will be financially free when you eventually retire from service, which therefore makes you more in control of your destiny.

According to Brian Tracy, in every one hundred people who start work at age 21, by age 65 (when they retire), one will be rich, four will be financially independent, fifteen will have some money put aside, and the other eight will still be working, broke, dependent on pension, or dead.

The category you will end up in will be determined by your retirement plans and savings before you finally retired.

2. To Maximise Your Savings By Taking The Risk Of Investment

Every investment is a risk. Therefore when you start planning your retirement at the very early stage, it gives you room to take the risk of investment in which there is a high possibility that it might double your earnings. But when you are not lucky by gaining, it won’t affect you a great deal.

Rather, you will rest assured that you have enough time ahead. Compare this to the risk of going into investment a few months or years to your retirement.

3. To Not Be A Burden On Your Children

A wonderful solution to not being a liability on your children is through the planning of your retirement by saving and investing before you can pull out from work. Though there is nothing wrong with your children taking care of you after your retirement, the best of which a good parent will pray for is to be able to cater for at least 90 per cent of his/her need after service. Your children whom you have always prayed for to become successful to cater for the remaining 10 per cent.

Your retirement plan should include what you want to be after retirement, is it a burden onto your children or a financially independent parent?

4. To Maintain Your Home

A home is considered one of the most valued asset especially when it is big. So the question is how will you be able to maintain that same home you raised your children after you retire? Would you rather put it on sale when you can’t adequately afford its maintenance fee?

5. As A Form Of Insurance

When you retire, you are probably not getting any younger again, and more medical attention is needed. And as we all know, age comes with increased medical expenses.

So by that time, you won’t have to worry about paying all your medical expenses by yourself alone since you already have life insurance to cover that.

Conclusion

These and many other reasons will help you seek out the best retirement plans and start planning for the future now. Do you have any addition? Tell me in the comments box.

Check out these 10 hobbies that can make you money.

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