When is it Too Late for Retirement Planning?Author: Bernz Jayma P.
Most people, when they think of retirement planning they think about waking up late, going on month long vacations, spending time with the grand kids and travelling. In actuality this should be the case for hard working individuals with sound financial and retirement planning. Besides what’s the point of working 40 hours or more a week for 45 years if you can’t bass in the thoughts of having a secure retirement?
Sadly many seniors between the ages of 55-60 plan on working an additional 10-15 years and extending their retirement plans well beyond age of 65. This means they did not put sound financial thinking into their retirement planning. What would make someone not consider their financial future after 65 if they know the cost of living will be substantially higher and means of financial support would be the low end of social security?
For some seniors the urge to add financial planning to there retirement plans may have started at the age of 50 and with 15 years let to work they felt it was too late to plan. Others simply believe that social security benefits, their children and the little money they put away each month will hold them through their retirement. This type of planning isn’t very practical since the cost of living will be much higher in 15 years, the possibility that your children may have financial woes and the money you stashed in drawers, jars and under the mattress has no growth potential.
If you think that it’s too late to start making financial decisions for retirement planning you couldn’t be further from the truth. As a matter of fact according to some financial planning coaches it’s never too late to plan for your financial future after retirement. While the potential for financial security after 65 is higher for people who start planning their retirement early it doesn’t mean that you can plan for a comfortable retirement future with only 15-20 years left.
Financial coaches will tell you if you set aside at least $5000.00 a year for at least 25 years, which is just under $500.00 a month, you would have saved nearly $800,000.00 towards retirement. But if you add another 10 years to this amount you would have nearly 1million in retirement funds. Now deduct 10 years from the 25 years and you could save close to half a million if you start at the age of 50 until your 65. Now ask yourself could you live off of half a million? Your retirement would be much more comfortable spending half a million verse 15 – 20 thousand a year.
Retirement planning is one of the most important things you could do to secure your financial future. Once you have the financial part taken care of you can start putting in those reservations for vacations, traveling and having a great time with your grandchildren without having to depend on the state or your children. Check out your options in using IRA’s, Stock investments and 401k plans to get you started. And remember it’s never too late to make financial decisions with your retirement planning.
About the Author:
Author and entrepreneur Bernz Jayma P. is the owner of a financial blog dedicated to helping people expand their knowledge on personal finance. You may visit his blog at http://www.Invesmint.com.