Retirement is a truth that we all have to face someday. We all have to deal with it sooner or later unbiased of whether we remain prepared for it or not. However, lack of enough funds after retirement can ring in unwarranted troubles and worries. Retirement planning is not easy. Besides, there are enough retirement concerns that you must pay attention to before they swell into big, unrelenting problems. Nearing the retirement age can stir up anxiety for many reasons. Some of them include:
No more salary: Retirement is defined as that golden period of life wherein you get rid of the daily grind to earn money to manage your expenses. With no occupation or fixed earning source to hold on to during that period, you must save in a way that leaves you enough to live the golden years of your life sans any financial worries. Investing in a pension plan that allows you the benefit of an annuity after you retire and secure your nominee’s financial future is one of the most commonly adopted financial plans for prolonged security.
Advertisement
Insufficient savings: Saving money for the heck of it is not enough. You must factor in the current inflation rate and its increasing effect to determine the saved money that would help you to meet tomorrow’s expenses. If not assessed carefully, the inflation rate could outstrip the interest earned on savings, thus, leaving you little for a secure tomorrow.
Outliving the money saved: A myopic attitude towards investments can leave you wanting for more money in the remaining years of your life. This is true of many people living prolonged lives up to 80-90 years. With little savings to fall back upon, retired people are often concerned about their survival if they outlive the money they have accumulated.
Advertisement
Health concerns: Health is a factor that many people ignore. This is because they do not realize the need for increased medical attention with increasing age. With hospitalization expenses soaring through the roof and costs of medicines increasing every year, it makes sense to have health insurance in place that can pay for medical treatment including hospital stay and related expenses on treatment. With no appropriate medical insurance policy in place, costs of treatment above a certain age can be a major cause of anxiety among retired people.
Fear of the unknown: People mostly fear the unknown. This is because the path not treaded can result in shocks and surprises beyond anticipation. Take time to plan for your future. Check how much you have saved, assess various investment options, and choose the one that suits your need and will secure against the ever-changing tide of time.
Depleted finances post-retirement can be a cause of concern, and can leave you feeling anxious and stressed for money. Pay attention to retirement planning early in life. Retirement planning is necessary, which means you must neither postpone your savings nor your investments.
The author is a journalist and a blogger
DISCLAIMER: Views expressed are the authors' own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.
Just one email a week