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Student financial planning
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Financial Priorities in Preparation for Retirement among Retiring Public School Teachers in Davao City Chapter 1
INTRODUCTION
Background of the Study
In an uncertain economy today, fiscal planning has become progressively significant.
George H. Schofield, Ph.D (2013) said that it would take money to be able to afford a comfortable, no work, more leisure time when retiring. Being financially prepared is one of the goals of every worker to enjoy the so-called golden years with ease and comfort.
According to Annual Retirement Confidence Survey (RCS), Americans’ trust in their power to afford a comfortable retirement remains low despite of a brightening economy is because they alone work for what they need and do not plan or even conceive of their retirement years.
Some workers save yet do not cognize how much do they genuinely need to economize in order to reach a financially secured retirement.
In a global perspective, it is more secure to work with financial planners and professionals to secure one’s financial well-being. Workers often guess on how much do they need to accumulate to invest for retirement than consulting to a professional financial adviser.
More likely, retirement is a big issue in our society nowadays. There are big questions entail on their mind on what they will do and when will they start. Financial preparation for retirement requires a huge internalization to produce a concrete and correct decision on selecting the right way of putting or investing their excess funds. Some employees don’t have any knowledge on managing, selecting and preparing their self in terms of retirement. In the Philippine setting SSS (for private workers) or GSIS (for public workers) benefits are those funds...
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Data Gathering Procedure
In collecting the data, the following steps were undertaken.
1. Through the purposive sampling, the research sought the permission of retiring public school teachers in Davao City. After the grant of permission, the questionnaire was explained and administered.
Statistical Treatment of the Data
The data are analyzed using a scale system and appropriate statistical tools as follows:
Mean. It is used to determine the Financial Priorities in Preparation for Retirement of the respondents and their profile.
F-Test. It is used to determine the significant differences on the Financial Priorities in Preparation for Retirement of the respondents and their profile.
T-Test. It is used to determine the significant differences on the Financial Priorities in Preparation for Retirement of the respondents and their profile.
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
...(which they do not control)” (Taleb). People should become more involved with the financial process. A person should save their money for the future instead of relying on investments to pay off. When investing they should choose things that are low risk and not take a large gamble.
If the people use their personal accounts, the retirees will then see higher returns on their investments. As a result, will put more money in the retiree’s pockets. Martin Feldstein, stated, “A private account earning a modest 5.5% real rate of return, "someone with $50,000 of real annual earnings during his working years could accumulate enough to fund an annual payout of about $22,000 after age 67, essentially doubling the current Social Security
Retirees over the age of sixty two in the United States are estimated by an independent financial survey to be sitting on over one trillion dollars in total assets. That money mostly lies in financial institutions gathering interest while needy family members suffer impatiently waiting for the day when it will be their inheritance. But not all seniors are that callous, they give away their money to loved ones before they die. There is no better way for the elderly to show that they care. Those that do can enjoy the pleasure of watching their money being spent. It is a joy that they would never experience if they waited until their death.
Through the years, people age and become less productive. For these reasons, they have to prepare some plans that help them secure their own future. But, there are instances that lead an individual to an early retirement. Some lack motivation and enthusiasm in their work. Others are not capable of working anymore as well because of the health issues that they are facing. Regardless of the reason, it is important that one has to work so that by the time they retire, they will not end up broke. Having this in mind, many people are already investing in a simple IRA.
Many Americans depend on Social Security benefits--from retirees, disabled workers, and dependents. Furthermore, numerous retirees have not saved enough money for retirement through other sources, so they count on Social Security as their basic source of income during their later years. Recently, the number of persons receiving Social Security has increased dramatically. This is largely due to the increasing number of persons in the baby boomer generation retiring and also people living many more years past retirement age. This increase in beneficiaries has initiated concerns and questions about the future of Social Security for persons still working. Recent studies have shown that in its current trend, the surplus of funds for Social Security will be depleted in the near future as the increase of payments will begin to exhaust the fund’s resources. To that end, reform of some kind is needed to help sustain this benefit for future generations to come (Social Security Administration, 2014).
A test to see exactly what type of job people qualify for, or their MOS, Military Occupation Specialty, gets a better job.
The Australian government will increase the age pension from 65 to 70 by 2035(Australian Department of Human services [AU]). This announcement has lots of challenges for Australian people who are under 50; some people support the rise and find it beneficial for the future economical life. However, others are against the announcement as it has lots of concerns for their future plan, as they have to work longer to save more for their retirement. The current population ageing put pressure on the young workers who support retirees and their families, at the same time it affect the economic development. So the rise of pension has advantages and disadvantages on the future life standard of most Australians. It is beneficial decision from the government to provide a productive and qualified future life.
Mitch. "Money Is Only Part of the Equation." The New Retirementality: Planning Your Life and Living Your Dreams-- at Any Age You Want. Chicago, IL: Dearborn Trade, 2001. 25-26. Print.
In the Philippines, the ages to be considered a senior citizen are those who are aged 60 years old and over. The senior citizens made up 6.8 percent of the 92.1 million household populations in 2010, higher than the 6.0 percent recorded in 2000 and the number reached over six million in 2011 and it is seen to double in 16 years. The number of people 60 years old and above, or those considered as senior citizens, has increased, as the country's household population increases. With the growing number of senior citizens, there is a generalized notion associated with senior citizens such as degeneration and decline of health and well being but on the contrary, most of them are still active and productive, performing significant roles at home and
Various researches can determine possible reasons as to why consumers have quite a lot of trouble making financial decisions that can be the most beneficial later in life. In the context of savings for retirement, conclusions from a test reveal that self-regulatory state, possible future orientation and more and better financial knowledge can and most likely will influence a consumers intentions for retirement investments, for example, setting up a 401K in the USA. Other studies suggest consumers who show higher amounts of future orientation are usually more likely to start up a retirement plan. Studies also show that financial knowledge and financial orientation toward ones future can help to influence the chances of one participating in a 401K plan.
A personal financial plan is essentially important for any person and their loved ones to minimize future hardships and difficult financial situations. Short and long-term financial freedom and stability is something an individual wants to have through to the end of his or her life. Financially planning for one’s retirement years is vital so a person does not sustain major unhappiness or unnecessary pain in what is supposed to be the reward for working so hard in their younger years.
Allers, Kimberly Seals. "How Fit Are Your Finances?" Ebony 68.9 (2013): 93-97. Academic Search Complete. Web. 15 Nov. 2013. Bauer, Gabrielle, and John Southerst. "A promising retirement: your life, your way." Maclean's 18 Feb. 2013: 37+. Opposing Viewpoints in Context. Web. 15 Nov. 2013.
There is always Social Security, and you may have a pension, but will this be enough for you to retire comfortably? Do you plan on staying in your present home, or will you be moving? Do you plan to travel? These are only a few of the questions you will need to ponder when you prepare for your eventual retirement.
The importance of saving for retirement is all based on how the individual wants their lifestyle to be after their career. The sooner they begin saving and investing their money, the more profound lifestyle they are bound to live. There is a saving plan called the 401(k) that lets employees have a percentage of their net pay withdrawn before taxes. This helps significantly if they are planning to retire earlier on in their lifetime because it can also lower the amount of taxes owed each take which essentially is more money in your pocket every paycheck. America as a whole downplays the significance of saving for retirement until they get of a certain age and they are too drained to get up for work and work a full shift as they would when they were of a younger age. Typically, when living in retirement you are free to travel and reach goals you were not able to achieve because life and work got in the way. Enjoying your retirement is the goal, not to make your retirement a burden to you or their