Two Reasons to Start a Retirement Fund
The end is nigh – the end, that is, of a secure social and financial safety net for you upon your retirement. Yes, retirees today can draw on pensions and social security, but it is a widely acknowledged truth that should our population and funding levels for social security continue to behave as they have to date, then social security won’t be there to help cushion your exit from working life. Indeed, many would-be retirees are already experiencing just how little social security is there for them now, as the retirement age continues to rise and the benefits received for retirees shrink or remain stagnant. Given all these problems, is it any wonder that so many are choosing to prepare and save for their retirement on their own?
Well, not entirely on their own. Saving and investing on your own is, in fact, more dangerous than if you simply relied on receiving social security; at the very least there is a modicum of security in a government program, even if that security is dwindling. Meanwhile, with private retirement funds, there is the chance that you could lose everything in the stock market – and wind up broke by the time your retirement age hits.
This is why you see so many elderly individuals working full-time jobs these days: their retirement funds up and disappeared in recent years, and when you need to pay the rent, your age doesn’t matter. You’re going to face a number of great reasons to invest in a retirement fund, but make sure that you do so with a professional. Having said that, here are just some of the challenges you’ll face that a robust retirement plan can rescue you from:
1. Sudden Medical Problems
As you age, you will encounter more and more medical issues. Rather than go to the ER and face countless medical bills, you’ll want to have insurance on-hand. But even insurance can’t cover everything, and for those truly staggering bills, a retirement fund can come to the rescue.
You’re going to face any number of sudden changes in your post-retirement life. The need to move, the need to pay for a new car, for problems facing your family or property, or more. Your retirement fund can allow you to painlessly (relatively speaking!) adapt to these challenges and then overcome them. Planning ahead, in fact, will always give you the advantage in such situations! Since you can’t know the future, all you can do is plan for every contingency!