Retirement seems like a long way away, doesn’t it?
Well, your parents and grandparents used to say the same thing and now they are nearly at that age where they can retire. Life will soon pass you by, and if you don’t take the necessary steps you could find yourself in a tricky position in your old age.
No one wants to spend their life working to have nothing when they do get the chance to finally enjoy life again, which is why you need to be proactive. Being proactive isn’t enough, however, because you also need to avoid a few common mistakes.
Relying On The Government
Not to sound cynical, but the government is not your friend and they won’t always have your best interests at heart. Yes, they might have the interests of the nation at heart, but that doesn’t necessarily mean it will positively affect you.
Governments are all about winning and retaining power, so new legislation comes out of the woodwork every five years or so. For you, that means your position could change drastically from half a decade to the next. Plus, state pensions are not renowned for lavishing pensioners in luxury.
Relying On Your Partner
The onus for retirement is on the individual. Of course, if you have been married for years your spouse is not going to see you starve. However, they might not have enough income to look after both of you because the standard of living is getting more expensive each year.
Also, you might not be married by the time you reach retirement. It is your retirement, which means it is your responsibility.
Relying On Your Children
Again, it is not your children’s job to look after you in your old age. The majority of kids will always do their part because you looked after them in their time of need.
Still, they have lives, and you should not burden them with extra responsibilities, as you were unable to put some money away every month.
There is only so much responsibility your children can take on, and if they don’t have the money themselves, how are they going to cope?
Relying On Inheritance
Just ask wills and probate solicitors how often they deal with angry family members and you will soon see why you should not rely on a nest egg.
Executing a will is an incredibly complicated and convoluted process, and often the family members do not receive the sum they hoped for.
If you do get an inheritance, you might need the process to run smoothly because you need the cash.
Solicitors who deal with wills and probates can ensure the process runs smoothly and efficiently, so hopefully any money you do receive is distributed quickly and fairly.Regardless, once they have made their decision, it is hard to reverse.
Hope You Are Okay
Praying to God isn’t a realistic way of saving money for retirement. Neither is winning the lottery or just hoping that your bank account will look healthier when you hit retirement age.
The only way you can be assured of a happy retirement is to put in the hard work in the years leading up to your retirement.
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