Retirement planning is one of the most important aspects of your financial management. If you do it right today, your future self will be more than thankful to you. For many privileged people, retirement planning sounds like a boring idea. For others, it is essential.
I have all I need, my family lives the best possible life, and my assets are enough to last me a lifetime. Why should I bother about going into the complexities of planning for some years of my retired life.
Thoughts like these are natural if you never had to worry about finances or if your retirement years are still far from reaching you. But, we plead you, don’t let these thoughts get in your way of making a comprehensive plan no matter what.
Despite experts always talking about the importance of retirement planning, a majority tends to overlook it. This is why today we are covering all those aspects that make retirement planning so important.
But, before we dive into the main agenda of this article, it is worth our time to first consider some basics:
What Is Retirement Planning?
While the term itself is self-explanatory, let us simplify it a bit for you.
Retirement planning means that a person, usually someone who is earning and has a regular source of income, starts taking financial decisions about theirs and their family’s life for the years they have to spend after they retire.
This majorly includes saving money that helps you sustain your post-retirement months in the absence of a proper source of income. Further, retirement planning also refers to setting realistic retirement goals and investing in assets that can generate you part-time income later in life.
Comprehensive and practical retirement planning ensures that you won’t have to look up to someone else to meet your goals and requirements after you retire.
Even when retirement planning is something that everyone should consider investing their time in, the planning process does not look the same for everyone. Your retirement planning might be very different from a colleague who earns the same as you do and has a family exactly like yours.
This further emphasizes the importance of proper financial planning for your post-retirement years and how you must be willing to invest your time and energies into getting it rightly done. Below are some reasons explaining everything on the retirement planning importance.
5 Things That Prove Retirement Planning Importance
Without further ado, let us quickly get into reasons that make retirement planning so important:
1- You’re Likely To Live Longer Than You Expect
Now, we understand that this seems like a weird reason to convince you to plan for your retirement years. But, trust us with this one. Better life expectancy rates are one of the top reasons you need to worry about saving up for the long life you’d be spending after retirement.
Mostly, people look up to the year they retire from jobs as more of a full stop to their lives. Yeah, it was a realistic view back in time. Decades ago, people would hardly make it to their 60th year and hence, they rarely had to worry about their expenses after they retire.
But now, things are different. Thanks to medical advancement, now people tend to live longer by easily defeating those viral and bacterial infections that would hardly spare anyone back in time.
With such a long life, it is obvious that you’d be having quite enough years after retirement. Unless you plan for those years well, there is no way you can sustain.
2- You Need A Bigger Financial Picture Of Your Life At All Steps
When taking a big decision that involves money, a wise person always tends to look at their overall financial health and how much money they can spare each month while tending to their post-retirement account.
This bigger picture isn’t available to you unless you start your retirement planning early on and are serious about it. The clearer you are about your post-retirement finances, the better and less risky financial decisions you’d be making.
3- You Never Know When You’d Lose Your Job
We don’t want to scare anyone but what’s a fact remains a fact regardless of how we feel about it. pandemics, depreciation, inflation, and the overall financial picture of the world are now tripping more than ever.
This means that even when working in the best organizations, you have no guarantee of your job until you turn 60. Sometimes, brands tend to forcefully retire their workers at the age of 55 or 50.
If any such thing happens to you, you’d be better able to deal with the financial stress if your retirement planning game has been strong. Otherwise, things can take quite ugly turns for you.
4- Your Children Need Not To Be Burdened
You realize how one’s 20s, 30s, and 40s are the best years for them to have their own family and plan their finances, right? This is the youthful phase your children will most probably be going through when you retire.
Would you want your children to focus only on providing you with the necessities of life after your retirement? Or will you prefer them to save up for their retirement years? You surely want the latter.
This is why you need to have such a strong financial backup for your retirement years that you never have to bother your kids about being your providers or financial supporters in any way.
We don’t want to break your heart, but it is rare for a child, with his own family to feed, to tend to all the needs of his retired parents happily. So, you need to be your savior!
5- You Deserve To Live Stress-free
When you retire, your focus should be on how you can make the most out of these hassle-free years. It is the time to enjoy your life with your partner and indulge yourself in all those adventures that you could not try before due to your busy schedule.
However, for most people these years are spent stressing over finances and the couples often break up because of consistent financial issues. You do not want this to happen in your case and this is why you need to cater to all the upcoming stresses beforehand. There is just one way to do so, focus on comprehensive retirement planning and take it very seriously.
Benefits Of Retirement Planning
You might not be convinced enough to plan your retirement years properly. Well, below we are listing some common benefits of retirement planning that will surely make you think about this important aspect seriously:
- Fewer stresses let you live a healthy old age
- Early retirement planning helps you have tax benefits
- You can continue to live a normal life, despite no income coming your way
- Planning for your retirement early, you save a lot on insurances and other such policies
Other than these four, there are so many more amazing things that come with having your retirement years planned. So, what is left for you to wait on? Start with whatever little you can plan for your post-retirement life and you’d surely achieve all your goals slowly.
When To Start Planning For Retirement?
If this is your first time reading something so persuasive regarding retirement planning, you might have had a query regarding the best time to start planning for your retirement.
Well, the simplest answer would be “the sooner the better”. Yes, if you think you can start sparing some money for your retirement years right when you get your first salary, go with it.
However, make sure that as your earnings grow and you go closer to your retirement age, your planning should become more focused, and you should be focusing more on savings than ever before.
Whatever you do, please do not procrastinate the planning just because you feel it is still so many years left to when you would retire. A mindset like this can ruin you in ways you have never thought can happen to you.
Another thing we cannot emphasize enough is the importance of being consistent. With whatever little you can do for your retirement saving account each month, make sure to stay consistent. Ignoring your retirement planning just for a month or two can nullify your financial progress in unimaginable ways and you surely don’t want this either.
That’s all from our side on retirement planning for this article. While we could have easily stretched this post to a hundred reasons explaining to you the importance of retirement planning, we think the ones we have stated here are enough to convince anyone who cares about their future self.
With this being said, we would like to wish you good luck with your retirement planning and hope that the entire process goes easy on you. All the best!
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This article is for informational purposes only.
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