Getting a Steady Income After Retirement
Some people cannot wait till retirement. The prospect of taking a break after 40 years of working is very tempting indeed. Everybody envisions sitting out on the backyard porch sipping tea, working on our rose bush and other non-stressful activities.
Unfortunately, this is only half the story. Admittedly, retirees do enjoy non-stressful activities. However, there are also matters that affect them because retirees do not have a steady stream of income if they do not make plans for it. Ideally, there should be some form of forced savings while there is a steady stream of income. When they retire, they can draw on this form of savings to allow them to continue with a comfortable lifestyle.
Now what would happen if your personal forced savings is insufficient by the time you retire? We can always fall back on our pension scheme, if that is available. There are many ways to make use of our pension scheme. One of this is to convert it to an annuity plan.
An annuity is a product offered by an institution whereby you will give the institution a sum of money in one-lump sum or over a period of time. In exchange, the institution will provide you with a steady stream of income from a future date onwards. The size of the income depends on the size of your initial investment. On top of that, the best annuity rates and the different types of annuities available will also affect your eventual income.
When you reach retirement age, there will be a slew of decisions to make. All of them is related to having a comfortable life after you have left the working force and do not have a steady stream of income. The pension scheme that you have been saving up all those years is now available for you to use. T...
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...our monthly payments is your age. This is because the older you get, the higher the likelihood that you will get ill. Apart from that, at the moment of signing, you should be free of illnesses. If, for instance, you are smoking, you will be required to pay higher monthly payments. Again this is because of the risk exposure whereby the more likely you are to get ill, the higher your monthly payments will be.
No doubt private medical insurance these days can be very costly. However, these are payments that you make every month to be prepared in the even that you have to conduct a medical procedure. When that happens, the substantial expenses will be borne by the insurance company. Imagine if you had not sign up with a private medical insurance scheme. If you need to go through a medical procedure in the future, you would be hard pressed to settle the medical expenses.
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.
The amount of people working into their retirement age is growing. The Bureau of Labor Statistics says that by 2014, 41 percent of adults aged 55 and older will still be in the work-place. The Metlife foundation and Civic Ventures found that 66 percent of adults age 50 to 59 plan to keep working during their retirement years and 15 percent of those say they will never retire (Sander 643).
1. This is understandable because most of us probably think that retirement is something that is eons away.
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...
Lemon, B. W., Bengtson, V. L., & Peterson, J. A. (1972). An exploration of the activity theory of aging: Activity types and life satisfaction among in-movers to a retirement community. Journal of gerontology, 27(4), 511-523.
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.
“The Golden Years? You've got to be kidding...(Nelson)” Ageism is the main influence for how older people view the aging process. Despite stereotypes, today, for the first time in history, most people can expect to live into their sixties and beyond. A longer life represents an important opportunity, not only for older people and their families, but also for societies as a whole. Additional years provide the chance to pursue new activities such as further education or a long-neglected passion, while continuing to make valuable contributions to family and community.
Personal financial planning eventually leads to secured retirement years; this is the purpose to plan for the future. With a volatile and erratic economy, and social security benefits undetermined in regards to having enough money to comfortably survive after retirement is critical. There is no magic ball to tell us what the coming years will bring; this is why it is up to each individual to have their own financial lives under control. Having a concrete financial plan now will secure an increased comfortable future.
Many OFW’s after working many years abroad was not prepared for their retirement. Many OFWs leave the comfort of staying in the Philippines and their loved ones behind in search for greener pasture. However, not all Filipinos who go abroad have a clear set plan for their retirement. According to Marquez, (2015) Life as an OFW is not forever. Soon enough, you will lose your strength, perfect vision and hearing. A retirement plan gives you more sense of security knowing that you’ll be okay financially if this time comes. According to Barrios, (2015) Retirement Fund is “real savings” which is meant for long term investment
Retirement comes early for most people. Early meaning that we are not ready for what comes with it. Most people would love to retire today, but unfortunately it is nearly impossible. It takes a lifetime for a person to become financial stable and adequately equip with assets that have been gained throughout someone’s life. Everyone must start young, in fact the sooner the better. Any money, or savings that can be applied today will always come with an enhanced future. So is it worth it to work harder and save now in order to possibly access a pleasant retirement? With out effort now we will be dependent on other sources in our retirement years, sources that may not come through for everyone who needs it. There are three ways to help Americans be better prepared now. These methods include saving money now, and investing in sources with returns. Do not become one of the millions of Americans who fall into government assisted retirement plans by lack of preparation and planning.
With increasing life expectancy and a contracting retirement income system households face an immense challenge in ensuring a secure retirement. Working longer is often viewed as a safe bet way to increase retirement incomes (Munnell and Sass, 2008). Moreover, new patterns of retirement have started to emerge such as; gradual retirement, phased retirement, and unretirement (Choi, Goode, and Tang, 2012). These fruitions create more friction for baby boomers entering retirement, a friction that causes firms to become resistant when creating new jobs. For example, it is far more cost efficient for a firm to reduce the work of an older employee (think gradual retirement) without training and bringing in a new worker to replace the older worker’s role (Filipczak, Raines, and Zernke,
Lots of working people are scared when comes planning for their retirement day, as well as there are some of them are confident to face theirs restful years. This people who fear with their retired age are the person whose are lack of knowledge about financial matters so they will ignore their planning for retirement as long as they can. The effect is, they will try to continue to work as long as they can work. Recently, the Ministry of Human Resource’s Malaysia, increase the retirement age to 60 years old for government sectors. As Hunt (2009) state that Malaysian confident for their retirement have decrease rapidly in some way. According to Lai Cheng Tung & Jean Dennis Comeau (2012) the people who agree with the new retirement age as they claim that they required more retirement savings, increasing retirement age will increase the life expectancy, and this provide retention of talent or improving skill proficiency especially in expert job that need longer years of experience to master it. To support more agreeableness in increasing retirement age, based from Life Insurance Association of Malaysia (LIAM), 5% and less than that percent are prepared completely for their retirement (Habib, 2007). All of the statement showed that Malaysian are still good enough to continue working even most of them are lately around 60’s as a period for preparing themselves before retired.
If you have just started thinking about a retirement plan, and you are an older individual, there are ways to make up for the years gone by. While it is always better to start when you are young, making good investments now, may gain enough money for you to retire comfortably. Find a reputable broker and discuss what you will need to reach your goals. When the plan is finalized you will need to stick to it faithfully.
Do you ever wonder what life after work feels like? Let me take you into a journey of the lives of four people that I had the pleasure of interviewing. These four people share their life of life after work, what made them retire earlier than the retirement age of 75, what the pros and cons are, how they handle living expenses, and how they live their daily lives. Furthermore, I became very intrigued at what I found.
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