The Advantages of Planning for Retirement

Retirement planning is all about determining your retirement income goals and what you need to do to achieve those goals. It also includes identifying income sources, working out expenses, implementing a savings program, making funeral plans, and managing assets and risk.

Sounds like a lot of challenging work, so what are the benefits, and is it worth planning for retirement? Let's look at some of the reasons why you should, and the sooner the better.

Average Life Expectancy Continues to Rise

One of the most important reasons to start planning for retirement is that the average life expectancy continues to rise. People are living longer than ever before which means you'll need more retirement funds saved to live off. With the average lifespan creeping up toward 80, you need a substantial sum to continue to live comfortably. 

What this means is that you've got to save more and plan for longer and the earlier you begin, the better your chances of having enough retirement funds to last your lifetime. 

You Can't Work Forever

Yes, some people work until the day they drop but for most, it's impossible to perform a profession at a high level forever. As you get older, you're going to slow down, and certain tasks will become more difficult. 

Even if you're planning to work your entire life, that's no reason not to save for retirement. You may have to retire earlier than anticipated. If you've got no retirement fund to fall back on, you'll be stuck with your "work forever" plan. 

You'll be able to Check Off Your Bucket List

So many people have an extensive list of dream places to visit and things they want to try or experience before they die. All too often things are holding you back such as a career, a growing family, or other life events.

When you retire, you can experience all those things you've been waiting to experience, as long as you plan accordingly. 

Another benefit of retirement planning and being comfortable financially is that you can stay totally in the moment and not have to worry about getting back to work or anything else. 

Whatever dreams you've had for your life, retirement is typically the time you can accomplish your goals. However, it's only possible if you plan carefully during your career. 

Future Financial Obstacles

It's important to remember that you may experience financial hardships in the future. It's common to be optimistic about the financial future and believe that things will be better in years to come, but you shouldn't rely on it. 

Nothing in the future is guaranteed which is why retirement planning is a necessity. Also, once that plan is in place, make sure to stick to it. Should you run into trouble later in life, you'll have to resist dipping into your retirement savings, although it will be there as a safety net if you need it. 

Relying on a Pension or Social Security is Risky

Retirement will mean you're eligible for a variety of social security and medical benefits, but they typically won't be enough to give you the comfortable retirement of your dreams. Your retirement funds will be needed to supplement anything you receive and provide a safety net should your benefits or pension be taken away. Proper retirement planning is also key if you need to cover any long-term care. 

You'll be Able to Give Back to Your Family

Some people's dreams of retirement include being able to give back to family. If you have a healthy pool of funds you can dip into, you'll be able to give lavish gifts and treat family members to a vacation or buy a vacation home you can pass down. 

Retirement planning makes it easier for you to be there for any large family events. You'll have the funds to book flights wherever your family might be. It means a lot to loved ones to know that you can be there when it matters. 

If you plan carefully for retirement, you might be able to leave a nice gift for your children or grandchildren when your time comes. 

On the flip side, if you don't plan for retirement, it becomes your children's responsibility to take care of you. In retirement, you shouldn't be dependent on anyone, least of all your family. 

If you have a strong retirement plan in place, you'll make sure you don't become a financial burden on those you love. It's much better to be in a position where you can help a family member's financial position, rather than make it worse.

Final Thoughts 

While everyone's financial circumstances are different, everyone has enough money to save for retirement. Even when you're struggling to make ends meet, changing your mindset and making saving money a priority will soon have you rising to the challenge. If the result is having a comfortable retirement, you'll find a way to make saving happen.