Reasons Planning for Retirement is Important

Many people don't want to hear that planning for retirement is important...

Especially when they may make a modest income as it is and can’t foresee being able to store away extra funds in savings for retirement.

The simple truth is that it can be done and must be done if you want to stop working at a certain age and ease into your golden years.

Here is a simple list below of the most important reasons for saving for retirement.

1. Future Security: The number one reason for saving for retirement is being able to provide for your most basic of needs for the 20-30 years you may spend after working your entire life.

Considering what a rough estimate may be for food, heat, utilities, rent/mortgage, car payments, etc on an annual average, the number can be overwhelming. This is why any savings or planning at all, can be helpful.

2. Unforeseen Circumstance: Though retirement should always be used for just retirement years, having a chunk of savings that you never touch...but in the rarest of emergencies...can help you when a sudden illness, death, or other unforeseen circumstance is upon you.

3. Children: Your children are your life. When you retire the last thing you will want to do is depend upon them. Without an income to afford your bills...even if you downsize your expenses...your children will feel obligated to house and provide for you. A parent never wants to be a burden to their children.

4. Social Security: Though initiated as a seemingly positive plan, your social security payments will afford you half or even a third of what you used to bring in. If you still have loans, mortgages and outstanding payments you will struggle on a greatly reduced income.

5. Healthcare: Unfortunately, more often than not, the older you get the more health problems you will encounter. Without health insurance as provided through an employer, you will be paying out of pocket for appointments, medications and the like; and as we all know, medical care is always extraordinarily expensive.

6. Quality of Life: Lastly, after working so many years, having an opportunity to relax and enjoy life...even modestly...should be a given. You do not want your last remaining years to be filled with stress over making ends meet.

In conclusion, planning for retirement is important and you do not need to be a millionaire to start setting up some sort of savings for retirement. Some employers offer 401k, stocks options and matching plans where others do not.

First, inquire at work if they do in fact offer some sort of retirement savings plan, and, if not, suggest it.

If this is not an option, start your own savings account. Whether you are in your 30s, 40s, or 50s, consider how much $10 per week would add to be over the next 10, 20, or 30 years. It may not be the full amount required for you to live the retirement of your dreams, but it could easily afford you a modest income for a few years.

Moreover, adding to this retirement account whenever you can will also do wonders for your end of life nest egg. Every bit counts when you begin to understand that planning for retirement is important. The sooner you start, the better off you will be in the end.