At the same time, one will also need to realise other goals like home ownership, child education, pursuing one's hobby, and so on. Retirement planning for the working class are typically social security, personal investments- mutual funds or stocks or real estate, and individual retirement accounts. Each has its own differences and benefits.
Sadly many do not know, or want to know, how much retirement planning income is realistically required to fund good liefestyle retirement years. Many in the workforce, when under stress, express a desire to retire, but do not know what it costs to retire. Others have been careless about personal wealth accumulation, failing to channel funds for investment growth. We sometimes wait until it is too late to think about retirement.
Still, many others do not mind working for a company but prefer not to hold its equity. This may be because the employee is very short sighted, knows too little of the merits of an employee stock option scheme.
The many years of low interest rate regime has taken its toll on savings sitting in time deposits. These factors negatively impact the retirement income planning process, especially if we want to retire and live well. Ask any retired working class person what he or she is facing. They will tell you stories of how inflation is still plaguing them long after they have stopped working. Inflation has worsened of late with hike in oil and raw materials prices of many good and services. Maintaining a preferred lifestyle is getting more difficult as purchasing power decreases.
This has caused many retirees to think about the sufficiency of their retirement income funds, and a clearer understanding that one cannot over-provide for an effective lifestyelretirement planning. Now should be the wake up call for all of us. Perhaps it's not too early to think about lifestyle retirement planning. Do I have a good lifestyle retirement plan? Have I started to do something about my lifestyle retirement planning? Do I know how much I need or the earliest date I can exit from the workforce? And should retirement be endless joy or joyless end?
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