Retirement Planning

Everybody will get old one day. Have you seen some old people living by the roadside, sleeping on one street to another everyday? Have you seen some old people collecting metal cans and paper box from rubbish heap just to make a living? However, there are some old people who are able to retire comfortably, living happily with their children. These are the one of life we want. Why are there some old people who can retire comfortably whereas some need to do dirty jobs or even no place to stay in?

Do you want to see yourself getting old one day, having to pick up ‘rubbish’ to sustain your living? Do you want to live in dignity, live happily with your children and grandchildren, retire comfortably, have no worries about your financial circumstances? Do you want to grow old one day, have no money in your pocket, cannot do what you want, not even money to buy newspaper? Instead you collect old newspaper to earn a living? If you do not want to live this kind of life, then you should start planning now. Start planning for your retirement now. Start thinking of what kind of life style you want when you reach retirement. How much would that cost you. How long do you think you are going to live? The average life span for a female is 79 and that of a male is 74. However, nowadays people are living a longer life. So it is always safer if you calculate a longer life span. When do you want to retire? This means that at what age should you wish to stop working? Multiply the number of years that you expect to live from the day you stop working with the daily living expenses that you assume you will need, this will give you the approximate amount of money you need for retirement. This is just a simple calculation, never take into account inflation rate.

There are various kinds of retirement lifestyle. Some people would want to retire luxuriously. These people would enjoy their life by go round touring different places, enjoying different food, experiencing their life with different people around them. Some people would want to retire having a simple lifestyle. These people just spend their day with not much expenses. Just 3 meals a day, spending time at home, watching TV, or spend time with friends to play some games and so on. They will need lesser retirement income obviously. So what kind of lifestyle you want for retirement determine the retirement income you will need.

Other necessary expenses that you need to consider when calculating your retirement plans is medical funds. When you reach old age, illnesses are more common. Your immunity is not as good as when you are young. You will have more ailments and sickness. You need to consult doctors. All these need money.

Money don’t come in your pocket instantly. You need to save. You need to accumulate your savings. You need to build your wealth by savings, investing and other means you are capable of doing. You can even build a business online that supplements your retirement plans. As soon as you start working, you should start thinking of your retirement plans. If you do that, then life would be easier in the future for you.

Besides the issue of retirement income, a very strong focus on creating and sustaining a positive mind set and healthy attitudes for aging and retirement is not to be overlooked.