During our youth, the concept of retirement may feel distant and insignificant. However, failing to maximize our current time and energy could lead to missing out on numerous opportunities, including the advantages of compound interest. It’s therefore never too early to initiate our journey into retirement planning.
What is Retirement Planning?
It refers to organizing a consistent source of income that will sustain us during our retirement years. This involves saving money and investing with the objective of supporting ourselves when we are no longer working.
What is the Importance of Retirement Planning?
☑ Financial independence:
Retirement planning will equip us with the ability to cover our expenses without relying on assistance from others.
☑ Sustain our living standards
Retirement planning will ensure that our desired lifestyle continues post-retirement.
☑ Achieve our future objectives
Our lives do not end when we retire. Retirement may kick-start a new chapter where we explore new hobbies or work towards fulfilling other dreams. This can be achieved through retirement planning.
☑ Create a lasting legacy
Retirement planning will help in ensuring a comfortable life for our families and the generations to come. This is through the wealth we may leave behind in the form of retirement savings and investments.
☑ Preparedness for emergencies
Retirement planning enables us to comfortably handle unforeseen challenging situations such as medical emergencies.
These reasons are enough emphasis on how vital retirement planning is, in:
- Ensuring a dignified retirement, and
- Transforming our envisioned retirement lifestyle into reality.
