By Daniella Rand
In the abstract, you know that it’s important to plan for retirement. Once you stop working completely, you can’t count on earned income to cover your expenses. Having a plan in place ensures that the cumulative income generated by your invested assets and other sources is sufficient to fund the lifestyle you’ve always envisioned for your post-work life — and to prevent you from burdening younger relatives.
Retirement planning has other advantages, too. Why don’t we take a closer look at some of the most important?
The Top 3 Advantages of Retirement Planning (In No Particular Order)
In no particular order, these are the top three advantages of retirement planning. They’re not the only three reasons to save for the future, though. What would you add to this list?
1. Increasing the Chances That You’re Able to Do What You Want in Retirement, When You Want to Do It
Isn’t this what retirement is all about? After you’re done with the daily grind, you deserve to be able to live life on your own terms. Making and adhering to a realistic retirement plan empowers you to do just that, when the time comes.
2. Preserving Assets for the Next Generation — Or a Very Long Retirement
Beginning the process of retirement planning today, while you’re still a ways off from hanging up your hat, is a great way to increase the chances that you’ll have a surplus to pass on to the next generation — if you have any heirs worth rewarding in such fashion, that is. Otherwise, you’ll ensure you have more than enough to see you through the remainder of what’s hopefully to be a very long life.
3. Boosting Your Self-Reliance (And Lessening Your Dependence on Benefits That May Never Come)
Lastly, putting in place a comprehensive retirement plan allows you to boost your self-reliance and lessen your dependence on outside sources of income — sources that may not be there when you’re ready to use them. Rather than rely on an overburdened corporate pension or an increasingly shaky government benefits program, you can reap the fruits of your labor: the nest egg that’s rightfully yours, now and for years to come.
What’s Your Reason for Saving?
As noted, these three top advantages of retirement planning aren’t the only reasons you should begin saving for the future today. Every investor has his or her own reasons for doing just that — some intensely personal and specific, some commonplace.
Regardless of your reasons for saving for retirement, you should never feel like you have to apologize for your sacrifice. The money you sock away and invest today will come in handy tomorrow. Indeed, it could mean the difference between a rewarding second act rich in novel experiences and self-discovery, and a tedious wait for whatever comes next.
Make the right call. Begin planning your retirement today.