I have come across people who think retirement is age 65, some
60, and others as early as 50. After talking to maybe a thousand people (on
rough estimate), one on one, they seem to think it is their right. A right to
stop working at the age they prefer or like. But retirement is more than
an age or a number. It is a GOAL.
A goal to stop working and relax and enjoy your last years at a certain
age YOU HAVE PREPARED FOR.
If I ask people if they have set aside for this goal, the answer
is a blank face with no certain answer to my question. And then, they enumerate
things they call retirement plan. But I
disagree. Here is why:
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Image courtesy of http://reachmymoneygoals.com/wpblog
/category/retirement-plan/ |
YOUR HOUSE & LOT IS NOT
A RETIREMENT PLAN. It is an asset you can keep where you can
stay comfortably in your twilight years.
If you sell your house and lot, you will be forced to rent or pay for a
home you already had before. You will
just be going to liquidate an asset to get the lump sum money but will diminish
and be used up in time. And some
retirement CAN BE LONG.
But if you’re going to sell it, and buy a smaller house to
maintain then I say that is a good move.
Maintaining a big house means big expense. Maintenance and utility bills can be a big
chunk in your monthly expenses so moving to a smaller place can be a good move
for you.
YOUR CHILD/CHILDREN IS NOT A
RETIREMENT PLAN. I’ve heard this on and on from ageing parents
that they have their children to take them in when they are old, but sorry your
child/children is not a retirement plan.
You will put them in a position where they have to financially support
you while supporting a family. The
stress they will have to put through just to get everything together and paid
is really hard for start-up couples with children. If you want your child/children to be
financially stable, help yourself. And
maybe then, they can start their lives with responsibility and a lot of
savings.
YOUR SSS AND RETIREMENT PAY
MAY NOT BE ENOUGH. Your SSS can be your monthly pension and your
retirement pay from your employer can be your lump sum pocket money. But believe me, these two may not be enough
for you. If you want to know how to
compute for your monthly SSS pension, please go to http://mamaravesph.blogspot.com/2013/12/how-to-compute-for-your-sss-monthly.html. And if you want to know how
much retirement pay you are getting from your employer, please go to http://mamaravesph.blogspot.com/2014/10/abc.html. Medicine costs at your fragile years can eat
up your whole SSS monthly pension, and one hospitalization can eat up your
whole retirement pay.
The key here is saving more than what is expected and deducted to
you by the government. You should have
shaved a percentage of your earnings from your monthly income and invest in an
investment tool you can feel secured.
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