Are You Prepared For Retirement?

Financial Management

Most young and mid-aged salaried M executives don't think of retirement when they are in employment and earning good salaries. This is because they feel retirement is still far away, like 15 or 20 years in the future. So, there is no need to worry about it now and they can leisurely start planning for it when it gets nearer like 5 or 10 years. So, they lead a lavish life by spending everything they earn, or increase their standard of living, or even starting living beyond their means by getting into credit cards and other debts. The confidence of youthful energy makes them think they can handle all these expenditures forever. But this is a big mistake. Time flies faster than expected and soon the scary retirement flag will appear on the horizon much earlier than anticipated.

Today, for any salaried employee, there are two inevitable risks. One is the risk of getting downsized and the second is the risk of getting retired. Even if you don't get downsized you will still have to retire someday. A very large percentage of people have severe difficulties adjusting to retirement and a sudden drop in income. This is because when you retire your monthly income will abruptly stop and you will have to start living from your savings or on a small pension. For example, have you ever imagined what it is to be old, retired, or have your monthly income drop to one-fifth or less than what you are earning today?

Will you still be able to maintain the lifestyle you were accustomed to for many years? Do you have the courage to instantly downgrade your life? Will your family agree to downshift everything they were accustomed to? The answer is usually no. Hence, it's always better to think ahead and plan for your retirement. Here are a bunch of ways to do it.