Everyone wants to enjoy their retirement life but not everyone are eligible to do so. Why? Because some people are in debts, is the sole breadwinner of the family, has responsibility, etc. There are many reasons why some people cannot get to relax and enjoy their retirement life. So, how should we start preparing for it?
In most places, the average retirement age will be around 62 years old. If we were to calculate the number of years that we need to work, that would be around 37 years considering that you start work around 25 years old. In these 37 years, you can put aside a small sum of money every month. For example, if you were to earn USD$2500 per month when you have just started working, save 30% of it every month. By the first year, you would have saved USD$9000. Of course as time pass, you are going to earn more and so, your saving is going to increase. By the time you reach 62 years old, you will have at least USD$333,000. If you were to live up to 92 years old, every month, you are able to use USD$925. But of course, like I said before, your saving is going to increase over 37 years, so it definitely going to be more. This is just one way of saving.
Another way would be getting insurance. Buying insurance is a way of protecting yourself and your family. Besides that, it is also a way of investment although it does not give you back high return but it is a safe investment where you will not lose money like investing in the stock market.
Besides saving money and buying insurance, another way of letting yourself enjoy life after retirement, you can start buying a house when you’re young so that by the time you retire, you would have finish paying all the instalments for it. So, during your retirement life, you do not have to worry about house instalments, etc. All you need to do is to relax because you have the money to pay for your basic needs every month.
Without having to worry about money issues during retirement age IS the best gift you could give yourself. So, start preparing for you retirement life when you start working.