Retirement provision in the 21st century


Should You Retire?

There are many reasons to stay in the job. Maybe you have an emotional bond with your office chair, or maybe you think your work is just too important to be left behind.

The truth is that there are many reasons to quit a job and just as many reasons not to quit. For most people, a 30-year career is enough. But is early retirement realistic for you? Let’s take a look at a few things.

When you are 50, the government says you will live for about 33 years (that’s what the Social Security actuarial tables show). This 33-year retirement can be longer than your entire professional career.

Life expectancy increases by leaps and bounds with the advancement of medicine and technology, and you should be thinking about a 40-year retirement. Maybe you should ask another question. Should you withdraw from the start?

Rising costs and political uncertainty leave many people wondering about the future. For that reason alone, figuring out how to finance a successful retirement and get the most out of what we have is hugely important.

What will retirement cost?

Besides travel, golf, fishing and macrame courses, what else would you like on the program? How much will your retirement cost? Will you have enough income to do anything? If you’re still saving for retirement, how much more does it take on each paycheck to raise that much money? Good question! Let’s get the answer!

One thing I didn’t think about was inflation and how much that stuff is going to cost in 15 or 20 years. If you look 20 years into the future, you can bet that what looks like a good annual income now will surely have to be bigger to buy the same things as it is today. Inflation can have an impact on how far your money flows.

But what will inflation be like over the years? Any number you come up with is likely good enough to get you through your first year of retirement. We can estimate how high inflation will be and what effect it will have in the 40 years after that.

Where to retire

Where will you live With a little luck, the mortgage will be paid off so that you only have to worry about property taxes and maintenance when you live. Perhaps in a warmer climate you can sell out and downsize to a smaller location. Sure, at 70 you have to shovel snow, even if it’s further away from family and friends. In addition, you don’t see the children that often anymore and they can come to visit at any time.

You should probably also think about insurance. You are currently likely to be covered by disability, life and health insurance under group policies. In fact, your employer is likely to sponsor part or perhaps all of the premium for this wonderful insurance policy.

When you retire, you could lose this insurance coverage. Then what happens to your spouse and family when you are ruthless enough to die at a young age? How do you pay for a serious illness or hospitalization and all of the doctor’s bills if you (heaven forbid) become permanently unable to work?

You can probably forget about getting government help. You are far too young to apply for either Social Security or Medicare. And even if you qualify, might government support not cover a survivor and all medical bills? If so, what are your alternatives? What about the maintenance costs if necessary?

You’re probably thinking, “Hmmm, maybe I should have a few more kids to support me in old age.” Don’t worry, you don’t need any more children. But you may not be able to quit your job. I’m just kidding about it. I am sure that you can retire at any age without adding to the population or being tied to a desk.


Source by Marshall Crum