Importance of Retirement Financial Planning
People look forward to retiring one day, yet many people do not begin retirement financial planning unto they have been working for many long years. It is important for people to begin setting aside money as soon as possible with the high cost of living. This savings will be for their sustenance after they are finished working. Studies have shown that four out of five employees have access to a company -sponsored 401k or similar investment strategy. On the other hand, more than four out of ten have no pension or long term savings. There are many reasons why you should start today, no matter what method of saving you have.
A lot time ago, the average life expectancy on the average was just over 68 years old. Today, however, life expectancy has increase to 78 years because of advancements in health care and the medical profession. This means that the longer you live, the more you will need to survive. In the 1950s, if you retired at 50, you would need enough savings to live for about 20 more years. But today, you will need enough savings for approximately three more decades, click here to learn more here!
People receiving social security gets a certain amount per year or per month. For many people, this monthly or yearly amount that they receive from social security is hardly enough money to comfortably live on. To add to that, you cannot begin to receive social security benefits until you are at least 62 years old. This means that if you retire early, you will have to rely entirely upon your own personal savings, 401k, or pension. Know more about financial planning at http://www.ehow.com/about_6811455_importance-financial-planning-business.html.
Retirees face every increasing cost of health care aside from their regular expenses such as mortgage payment, groceries, insurance, and entertainment. On top of health insurance premiums, a couple of retiring age can expect to pay a lot of routine medical procedures, check-ups, and medications. This cost will increase as the years go by, check it out here!
These are the disadvantages of not having proper retirement financial planning. Let us see now what you can do if you have proper financial planning. As we have mentioned earlier, people live longer now than ever before. This, coupled with no work, means enormous amounts of time for leisure activities. If you are financially secure, this can mean visiting out of town relatives on a regular basis, taking vacations across the country and globe, and even indulging in high-end restaurants on a regular basis.
In other words, retirement financial planning is necessary for a healthy, stress-free, and timely retirement. The less you will have to worry in your later years, the earlier and more you save.