The importance of planning for retirement

Posted by Felix Okoli on Friday March 21, 2014 at 9:5:1:

How old are you? 25? 30 or even 40 years old? You are already too old and you should start planning for your future if you plan to stick around for quite a while and gracefully too.

There comes a time in everybody’s life, when the body grows weaker because of old age, and cannot do as much as it used to. At this time, we are expected to start planning to retire from active work and start getting used to resting our bodies gradually.

A lot of people, especially young people do not make plans for such a time because they believe in eternal youth. Maybe because they think it is too early to start planning for retirement, or because they are in denial that such a time will ever come. Old age and retirement is inevitable as long as one is alive or at least humanity has not unlocked eternal youth. Until then, It is advised that plans for retirement should be made and can start when one is at least 25 years old.

Not making plans and saving for retirement makes one’s old age frustrating and full of worries.

Lets look at some of the reason why planning for retirement is very important for everybody.

Importance of planning for your retirement
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- It helps to make Your Life more Comfortable in Your Old Age: Planning for your retirement helps you save up enough money to live a Comfortable life at your Old age, and after you retire, you can comfortably take care of your basic needs like paying of rents, feeding, and other bills , But in a situation where you lavished all your income in your youthful days, taking care of these basic needs becomes a burden for you in your old age.

- It enables you take care of your Children: By the you retire, some of your Kids might still be in High school or University, depending on when you got married. Planning for your retirement will help you save up enough money to take care of your children even after you retire.

Also, it takes off the burden of taking care of all your financial needs from your Children. Even though this thought doesn’t not necessary work in Africa, because in Africa, Parent raise up their Children and their Children in turn will take proper care of their parents during their Old age.

- It helps you take care of your Health: As you get old, your body becomes more prone to diseases and illness, due to the weak and worn out cells in the body, planning for retirement helps you save up enough money that will pay for any health issues that might arise during your Old age.

- It gives you more Confidence to retire Early: Most People that did not plan for their retirement in their Youthful days will have no choice than to continue working well into their old age. This should not be so, and can be avoided by making proper plans early to start saving for your retirement, doing so will give you the confidence to retire early knowing fully well that you have saved up enough money to take care of your needs.

These are four important reasons why People should start planning for their retirement early enough. If possible, start putting aside at least 10 % of your monthly income in a separate account for retirement, If you start doing this in your late twenties, before you get to 65 years, which is the average age for retirement, you would have saved 11 times your annual income.