When a youth, there is a misconception that there is still a long way to go before pension and retirement. People tend to take it easy, have fun and forget that age is catching up faster than before. When you get to the age of 50, thoughts start trickling in about retirement and no sooner than before the retirement age hits.
At times it becomes a disappointing affair for many, and they may feel like they have reached a dead end but wait, this is not the case.
If we consider the baby boomers in America, the first lot is now hitting the age of 60, yet they are still very active and the drivers of the larger economy. This is a reason to rejuvenate your life if you are starting your retirement and face life as it is.
This is because retirement comes with many benefits and at times frustrations but looking at it positively will help one get to the next level with confidence.
Below are some important notes that would not be aware of retirement and pension but they are worth pondering about.
1. You will have an opportunity to live with your spouse more than you have seen each other.
Usually working life may become a hindrance to meeting with your spouse as often. The reason being that you are traveling to work, working away from home for a few days, and when you get back home, you are tired and need a rest.
Upon retirement, this changes and possibly you live to see your spouse for more than 12 hours in a day. You may end up getting frustrated with each other behavior as this was not the norm. The solution is that before retirement, look for some common things that you may enjoy together, set up something with your pension to have given a return to the family and have less of idle time
2. Even when the retirement age strikes, your Employer still wishes to retain you
Think about those times when you got free training and developed a character that has impressed your boss overtime, then the retirement age strikes, and it’s not easy to release the retiree. However, if we take the case of Canada, Baby boomers are expected to retire in a short while, and as such, they are offering continued pension and benefits to manage the old employees as the mentor the young generation into the field
3. To save for more than 80 years of age.
Most people budget up to a lifespan of 80 years. But from extensive research, it has proved that as long as you have lived for 65 years without the terminal illness, then the possibility of living beyond 80 years is high and as such, your pension should be budgeted for over the 80 years lifespan
4. Getting part-time employment is paramount.
To some people, the pension may be little such that it may not fully support somebody after retirement. The solution to this is to go out of the box, get a part-time job which will boost your pension. This may seem to be a hobby but in the real sense it is an income generating project. It may make one look more youthful, and the urge to retire may fade away
Upon retirement, one is not bound to living in a city where life is so expensive when compared to the pension savings. Relocating can be a viable option, for instance relocating from Canada to Costa Rica and enjoy huge savings due to the cost of living and great weather conditions that go hand in hand with the elderly and end up living longer
There is a feeling that if one is not able to save at least 70% of the annual salary, then life will have hit a hard rock. This is not the case. The fact that one is no longer paying for their children’s upkeep and school fees, this is good enough to have a relative that the cost of living will be much lower. 50% saving will help you to push on comfortably and have a million dollars may not be the solution.
After all, one should not engage in expensive spending habits when retired and relying on pension as upkeep
During the employment period, a percentage of your savings is deducted from your salary, and in most cases, another percentage is paid by the employer, and mostly, the employer pays more than you do. This is free money, and without engaging in a pension scheme, you are losing out on it. As such, it is kind advice, to enroll in a pension scheme and enjoy the benefits.
8. RRSP is not a solution
In Canada, the Registered Retirement Savings Plan is not always a solution as it may be presumed for retirees especially if one has a debt that that is deducted every month. Mostly for low-income earners, it may be an added cost of interest to the already existing card balance. Also, it may not be a worthy investment because of the high taxes imposed on the program.
9. That the Government is concerned about your wellbeing
If we take the case of Canada, the federal government have a savings plan model which enables the retirees to enjoy tremendous benefits upon retirement. For instance, it offers a guaranteed income so long as you have been working in Canada for the entire life and have retired at the age of 65.
The low-income earners are also not left out, and they get an equivalent compensation to a standard of living by the federal government governance policy. This is worth thinking about.
10. You are still part of the Resident
Upon retirement, people may think that they are outcasts and may not find their relevance anymore. They end up sticking in their jobs even if they are stressing at an old age. This is a misconception and ought not to be put into consideration. With this in mind, it’s essential to live a full life even after retirement and enjoy the benefits.
Besides, retire at the right time to evade any penalties. For instance, retiring early may mean that that year, you lose the retirement benefits and pensions from the employer and the monthly cost of living is still up and counting.
When all this is said and done, it’s imperative to put it into practice and weigh out each point and what the future holds. It’s worth more researching and gaining knowledge and information that lies in the retirement and pension plans.