You live, you work, and you retire. Many people think that after retirement things become easier, you don’t have to work anymore, you can travel and do everything you have always dreamed of doing before. There are some cases where this is true; however, there are many myths regarding planning and saving for retirement, and living your life during retirement that leads some people to be blindsided when it’s finally time for retirement. At KNR Consulting, our financial planners and consultants want to help debunk myths surrounding retirement and help you prepare for a life that is full of travel and leisure.
Retirement is the end. The standard age of retirement is 65 and life expectancy in the U.S. is 79 years. That’s 14 years of time when you aren’t working and where you will hopefully be healthy and able to lead a life full of experiences. Many people will live past 79 years; what will you do with those years? Planning for retirement with strategies that will account for this is the best way to have a worry-free retirement.
Retirement is a vacation. The vision of spending retirement taking up hobbies, traveling, and experiencing a variety of entertainment and activities is a dream that many strive to achieve. On the other hand, this lifestyle isn’t sustainable without becoming tiresome. There will still be days of tedious household chores and gloomy days where the game of golf you were planning on needs to be put on hold. Even retirement can get boring.
If you hate your job and are miserable with life while working, retirement isn’t going to make you suddenly cheery. Find interesting hobbies and take up activities before you retire so you have something to look forward to. Plan a life around a variety of activities, physical and mental, so your days don’t go by without purpose.
Saving for retirement can wait. Saving for retirement isn’t something that comes naturally, many have to work at it. In your early 20’s there are student loans to pay off, you want to travel and go out with friends. Later, you want to buy a house and have kids. There are large expenses that may never go away throughout life. The earlier you start making saving a habit, the easier it will be and the more time there will be for your money to grow.
The government will be there to help you out. Social Security, Medicare, and Medicaid are services provided to help you live during retirement, but these should not be relied on. With rising medication costs and expensive senior living facilities, even those with a substantial savings account need to plan for continued rising costs and a Social Security system that may be unreliable.
Your family will be there for you. Families often care for their elderly parents, but with kids and possibly grandchildren of their own, your children will have their own financial responsibilities. There are also many families whose children have moved away, so relying on family can be risky.
You can survive on your pension. More and more companies are not offering pensions. It is also becoming more uncommon for people to stay at a company long enough to qualify for a pension. If you are lucky enough to qualify for a pension, it still may not be enough to live off of. With such a bleak pension outlook, a backup savings income is required.
It’s a struggle to feel financially secure in an economy that has ups and downs. If you start saving and planning for retirement early and with successful strategies, you have a better chance of leading a stress-free retirement. KNR Consulting financial consultants only want the best for our client’s work-free years. Contact us today to benefit from retirement advice from an experienced and trustworthy financial advisor.