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5 Reasons Why Retirement Planning Is Important

Why you should plan to plan ahead for retirement.

Why you should plan to plan ahead for retirement.
  • Getting stuck in the savings mindset. Saving should be formed as a habit. The amount saved can be increased over time.
  • Medical emergencies. With increasing age comes more health problems. Medical claims might not always suffice.
  • Inflation needs to be taken into account.
  • No state-sponsored pension plan. Not all countries have state pensions or social security benefits.
  • Fragmentation of nuclear families.  With fewer children per family, retirement should be planned without help from your family.

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5 Reasons Why Retirement Planning Is Important

5 Reasons Why Retirement Planning Is Important

https://sg.theasianparent.com/5-reasons-why-is-retirement-planning-important/

sg.theasianparent.com

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Key Idea

Why you should plan to plan ahead for retirement.

  • Getting stuck in the savings mindset. Saving should be formed as a habit. The amount saved can be increased over time.
  • Medical emergencies. With increasing age comes more health problems. Medical claims might not always suffice.
  • Inflation needs to be taken into account.
  • No state-sponsored pension plan. Not all countries have state pensions or social security benefits.
  • Fragmentation of nuclear families.  With fewer children per family, retirement should be planned without help from your family.

EXPLORE MORE AROUND THESE TOPICS:

SIMILAR ARTICLES & IDEAS:

Uncertainty of Social Security and Pension Benefits
  • The aging population is causing fewer contributors.
  • More people are retiring due to increased longevity.
  • Corporate col...
Unforeseen Medical Expenses

Old age typically brings medical problems and increased healthcare expenses.

Living out your retirement years in comfort while also covering your medical expenses may turn out to be a burden too large to bear.

Estate Planning

Without a well-planned retirement nest egg, you may be forced to liquidate your assets in order to cover your expenses during your retirement years.

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Early Mistakes, Late Start & Future Hurdles.

Savings and investments should be part of a monthly budget even when young or just starting a career.

You cannot save enough if you are waiting until your late 30's before...

Myth vs. Reality in Retirement Planning
  • I’m not that old:  It’s not about NOW but saving for your old days when you can no longer work full time. 
  • I’ll wait for a lump sum is just an excuse to postpone planning or procrastinate.
  • Assumed Family/External Support: It’s better to be prepared for eventualities and have contingency funds in hand.
  • Financial Requirements Decrease: Medical costs increase with age. Inflation and other factors might also come into play.
  • I will not live that long or I won’t retire: People tend to live longer, but they will suffer from medical ailments.
Retirement Goals

To have a secure and financially independent retired life during your golden years with regular post retirement income, a corpus of savings/investments and a safe shelter or home.

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Smart retirement planning boils down to a few simple truths.
  • Time is on your side.  The earlier you start saving money, the more time you give compounding to work for you. 
  • Take risks when you're young.  Althoug...