Many people who are on the verge of retirement do not estimate the expenditure that they should be planning for various things such as health care, living costs, residential support and other essential things when they retire. As a result, they do not save for the most important years of their life. Most people find it an overwhelming and daunting task to calculate the expenses they will be needing during their retirement. As a result, they procrastinate over it. Consequently, the majority of retirees suffer emotionally and physically as they cannot manage to pay for their basic needs when they stop working.
In this post, let’s look at some of the reasons why people postpone financial planning for their retirement years:
Too Young To Think of Retirement
Most people will think it is too early to start planning for saving for their retirement when they are in their 20’s or 30’s. Statistics prove that the earlier you start planning, the lesser you will have to invest for a greater fortune that will be waiting for you when you retire. Look at this, one can become a millionaire by the age of 65 by investing as little as £25,000 by age 25, if the rate of return is 12%. As you age, you will need to keep contributing many times over to get the same amount at the end. Do you still think you are too young to plan?
Too Old To Save for Retirement
People in their 40’s and 50’s do start thinking of retirement savings plans, but fear that it may be too late. However, even though you missed starting at the age of 25 to save for your future, it is better to start thinking of your future at 40 than to repent and suffer at the age of 60. With the costs of live in care for the elderly, healthcare, and several other costs to consider, it’s best to start investing whenever you can, than to never invest at all. Leave the past behind and look for the best investment opportunities available to people in your age bracket.
Don’t Earn Enough To Save
Most people feel that they don’t earn enough to save for later years. That’s a wrong notion. Even the minimum wage earners can plan for a comfortable retirement if they start investing at an early age. Statistics prove that investing a little sum in the right investment plan can yield a huge amount of money for your retirement years.
There is no better time to start saving for your retirement than right now. Do not procrastinate for any reason. Start today. Seek sound financial planning from the experts and look forward to a financially secure retirement.