Why Should I Worry About Retirement?
Why Should I Worry About Retirement? I believe most people today are very short sighted. Many I talk to think retirement is way far off in the distance. It’s like some fantasy, and most assume they will be covered when it gets there, I mean it’s so far away, right?
If you are say, 40, and you want to retire at 60 then that leaves 20 years. Which might sound like a lot until you break it down some. That’s only 240 months! This is huge on why it’s so important to focus on our finances right now! Every day that goes by is a day that we get older. I don’t want to sound so dim but seriously every day that passes:
- The chances of continued good health falls.
- The ability to continue working falls.
- And the ability for compound interest to work fall as well.
To answer the question why should I worry about retirement, it is because it’s closer than you think it is. The one thing that true is we are all getting older. There will come a point when we can’t work anymore.
It’s super important to get serious on this issue and make retirement a time of bliss! We live in such a wonderful age right now! We live in a time of abundance, but we can’t lose sight of reality, even if you make a lot of money right now; that doesn’t guarantee you will have a happy retirement, it’s like a seed that requires constant care.
This article is a great anecdote of what CAN happen if you don’t plan accordingly. This should help answer your question: “Why Should I Worry About Retirement”.
As always make sure to visit the full article to get the whole story, but here are the highlights.
“Suicide is my retirement plan,” Scott, a 60-year-old adjunct professor, said in an interview with Vitae. “Unless you have a spouse or partner, you’re looking at dire poverty in old age. In addition to poverty, you’re looking at getting no additional work because of your age, or you’re looking at dropping dead in the classroom.”
…been teaching for over a quarter century but never received the tenured position she hoped for. After years of financial struggles — including the loss of a home — she has no money saved for retirement.
Fewer Americans than ever before are adequately prepared financially to retire. In a survey this year by the Employee Benefit Research Institute and Greenwald & Associates, 28 percent said they have less than $1,000 in savings and investments poised for retirement. A 2014 Federal Reserve survey paints a more discouraging picture: 31 percent of non-retired respondents have zero retirement savings — 19 percent of them ages 55 to 64.
Scott’s story is a real-life reminder that paints a painful portrait most people would rather avoid. With their golden years well ahead of them, many people assume there will be enough money stored up to retire without a hitch. And they don’t even want to think about considering the alternative. But for many adults behind on retirement savings, they might be unaware of the realities of retiring without enough money in the bank.
You could end up homeless. In all honesty, ending up homeless isn’t far from reality for people with zero savings or assets to their name. But in some corners of the world, it’s a way of life for a number of baby boomers. A 2014 Harper’s article brought this sad fact to light as “a growing trend of older Americans for whom the reality of unaffordable housing and scarcity of work has driven them from their homes and onto the road in search of seasonal and temporary employment across the country,” Lynn Stuart Parramore wrote of AlterNet. These displaced seniors have no choice but to keep working as RV-roaming nomads in whatever farm, factory or amusement park that will have the “workampers.”
Start Saving for Retirement Now
It’s never too late to begin a retirement savings plan, no matter what stage of life you’re in. Here are retirement savings tips for different age groups:
- In your 20s: You’ve got 40-plus years to build a nest egg, but don’t procrastinate. A recent LearnVest study found that a saver who begins putting away $600 a year in a retirement fund at age 25 will have $72,000 by age 65.
- In your 30s: With your career hopefully in full swing, this is the decade to take advantage of investments and high interest rates to strengthen your retirement nest egg. This is the period when you should be considering savings vehicles like index funds and contributing heavily to your IRA or 401(k). Start building a financial relationship with a broker to guide you down your savings path.
- In your 40s and 50s: With the retirement savings ball rolling, middle age is the time to keep honing and managing your finances to save up some extra cash. Stay on top of your budget, build an emergency fund, take steps to minimize spending and lower high-interest debt, and find extra income through insurance. By this point, you should be homing in on the dollar figure you’ll need if you intend to retire between 65 to 70.
I hope this is an eye opening experience to why we need to get more financially fit, when properly exercised life is awesome, but when ignored life will shut the door in your face! You have ONE life, LIVE IT!! Make sure to share Scott’s story! It’s not as rare as we might think, and make sure to hit the subscribe button! Don’t ever ask yourself Why Should I Worry About Retirement again! Now you know!