DO you want to live a life of financial stress or financial peace? Do you want to retire young and early or you want to retire old and sickly?
These are the two questions we need to answer in order for us to be able to retire comfortably.
Retirement has been perceived as a phase in life when you can unwind, take a break from a busy schedule, and just enjoy yourself after a long career in the work field.
For others, retirement includes time with family, loved ones, and friends as well as making time for travel and leisure, volunteering to causes, or still even taking part-time jobs. That’s the typical retirement fantasy.
Sad to say, many people hold off their plans of retiring and the likelihood of attaining financial freedom somehow becomes difficult to envision.
Retirement can be a strenuous season of a person’s life especially if that person failed to save. With an insufficient retirement fund, one may not be able to fulfill the retirement dream.
For some, this also means you need to work longer than your retirement age. You are forced to even if you are not anymore mentally and physically fit. But the worst situation is those who, after retiring, still find themselves worrying about paying debts and experiencing financial stress.
If you want to avoid that, I have good news. You do not have to rely on your retirement on the hands of others but the fate of your retirement years is dependent upon you!
The power to live restfully and live life to the fullest during your retirement years is mostly within your own command. When you start to plan your retirement years ahead, getting stuck at work won’t have to be your retirement reality!
It is very important that you understand the concept of retirement and make your own timeline of when to execute your plans.
Here are eight retirement questions you need to answer to be able to retire comfortably:
- When do you like to retire?
Do you want to retire at 45, 55, or 65?
- What do you want to do after retiring?
Do you want travel? Start your own business? Be a missionary?
- What lifestyle do you want to have after retiring?
Choose from simple, moderate, or extravagant. Choose the type of lifestyle do you want to sustain or live.
- How much monthly income do you need to sustain your chosen lifestyle?
You need to know the exact amount so that you will be able to plan and save in advance.
- How will you take care of your healthcare needs?
The need of taking care of our health is not an issue of if we need. It is an issue when we do need it. Because of the stress and aging process of our body, health maintenance is a must!
- What or who will fund your retirement? (government benefits, investments)
Where will you invest or make your money grow?
SSS, GSIS, Pag-IBIG, or other government pension programs? Mutual fund, UITF, stock market, or other financial instruments? Business that you built or lease income from properties?
- How many years do you have left to complete your retirement savings?
Have you set a timeline and plan on how many productive years you have left? Have you also computed will the money be saved will meet the lifestyle and the monthly expenses you need for the rest of your life?
- Do you have retirement plan written down already?
Writing your retirement plan will help guide you as time goes by. Also, you can keep track of how you are progressing, therefore, you need to regularly monitor your plan and make necessary adjustments.
Keep in mind that the results of your retirement plan won’t exactly be as what you have planned, there can be changes and some needed modifications, so prepare yourself.
The simpler your retirement plan the easier it will be to implement it and it becomes easier for you to stay on course. And because retirement in itself is already a very big decision to make, you can’t afford to get it wrong.
Because once you are there, that’s it. Retirement planning is not a video game. There is no such thing as a restart button. Prepare yourself and don’t be afraid to ask and answer questions regarding retirement because doing so will ultimately help you prepare for that day!
THINK. REFLECT. APPLY.
How important is preparedness before retirement to you? Please gauge it, one lowest 10 highest. What could possibly happen to you if you don’t prepare for retirement?
