Retirement plan, according to Britannica dictionary, is a system for saving money for use during your retirement. Planning for retirement enables you to save enough money to maintain or change your present standard of living. Nobody wants to work all the way to the end after all, right? That is why it’s crucial to create a workable plan that will help you acquire the most money possible when you retire.
The question is, “Are you ready with your retirement plan?” Well, not saving for your retirement fund is one of the most dangerous things that can happen to your life. When the time comes and you’re not financially ready, that’s when you’ll look back and regret will hit you hard. You probably have heard stories of people who retired and ended up broke and poor, and we hope that it intensifies the urge within you to start thinking about responsible retirement planning. Below, we have compiled 5 pondering questions you should ask yourself regarding your retirement plan.
1. Resources
When we talk about resources, it links to the question, “Are you able to retire already with the money that you currently have?”. Note that retirement is not an age or number issue but rather a capability issue. Will you able to live after you resigned from your job and stopped working? In other words, whether you’re in 60s or 70s, if you are not capable to retire, you cannot retire. Why? Because the moment you stop working, you stop earning, and unfortunately, you don’t stop spending-especially your family or dependents.
Read: How to Apply for SSS Retirement Benefits
2. Lifestyle
What type of lifestyle do you prefer when you retire? Start visualizing where you will live. Do you want to reside in the city or province? If you opt for the city, then it will surely take a huge percent of your money, but you can always choose a province lifestyle which is way cheaper than the latter.
3. Consequences
What happens if you do not prepare? Obviously, insufficient preparation will lead you broke, poor, no freedom and choice because you don’t have money. Perhaps, some people aren’t able to prepare for their retirement plan because of lack of money, lack of foresight, and lack of knowledge. But as they say in Filipino, “Kung gusto may paraan, kung ayaw, maraming dahilan.” So, it is best to start planning the future ahead of time to have a fallback.
4. Preparations
How to prepare for your retirement? How much income do you need when you retire? Is it P20,000, P50,000, 100,000 or P1M? Again, this depends on your lifestyle or what lifestyle you want to have after you retire. One more thing, where will your fund come from? Do you have an investment? House and lot? Or some properties for rent?
5. Reality
What is your current situation? Do you have a regular income, savings, loans you need to pay, or any investments? If not, frankly, you cannot afford to retire. That is why as soon as possible, you must plan your retirement fund. Do you want to live your retirement day to chance? Or do you want to make a choice to live a happy, fulfilled and independent life once you retire? The decision is yours. Just like your retirement goals and plans, you have the power to give your retirement life and you have the power to kill it.