Retirement should be the best time of your life, that is when you can relax and enjoy your life by reaping benefits of what you earn in so many years of hard work. To achieve a worry-free retired life, here’s why you should plan ahead.
1. Worry-free about the daily expenses during retirement
Retirement planning involves in planning of how much money needed or wished to receive when we retired. This can be ensuring that we have enough money to cover daily expense during our retirement life. For example, Alan is at the age of 25 now and he is planning to retire when he is 55 years old. The retirement income he plan to have is RM5,000 per month for the next 30 years after he retired. So, the total amount of retirement fund needed is approximately RM1,800,000. If Alan can accumulate the fund start from now to his retirement age then he can enjoy his retirement life with RM5,000 every month as he anticipated for 30 years of retirement. Thus, one of the main benefits of retirement planning is to possess sufficient retirement fund to enjoy the rest of the life.
2. Authority and dignity to decide your retirement life
Some people are forced to work during their retirement age. Why will this happen? That’s because they do not have strong financial base to sustain their retirement life if they chose not to work. However, some of them do have a choice whether work or not-to-work. They can choose either helping in his/her own business or exploring the world as everyone’s wish. If we have a good retirement planning, surely we have more alternatives to decide our retirement life. Besides, retirement planning can benefit us in term of dignity as well. The reason is because we have accounted for the things that we should do and how much money we need during retirement. Hence, we have financial independence without having to be employed or dependent on our children because WE are the decision maker of our own retirement life.
3. Worry-free about the uncertainty happen during retirement (Such as Critical illness and disability)
As we know retirement income is used to settle our daily expenses during our retirement life. Nevertheless, there are a lot of uncertainties occurring in our life and it will cost us a lot of money. For instance, diagnose critical illness, accident and permanent disability; all of these are the most frequent uncertainties that will happen in our life. All these will cause us unable to work and deal with huge medical bills. Imagine that the money earned during our half lifetime is to be spent at once. Thus, retirement planning includes the prevention of uncertainty happen during our retirement life through the insurance cover. With a proper retirement planning and wide insurance coverage, people can be worry-free from the uncertainties. Therefore, retirement planning helps to remove the worries of any unpredictable things happen.
There are the main benefits that you can enjoy your retirement life if you have a great retirement planning. What do you need to do now in order to achieve worry-free of your retirement life? Well, you should start your retirement planning as early as possible which is RIGHT NOW!