The English dictionary defines ‘retirement’ as the act of retiring from one’s work, office, etc; the act of going away or retreating. Now what does this mean? Does it mean that you stop living your life and just while away your time till your call comes? Nope, there is lot more to retirement than what is commonly believed and that begs the question: should there be a retirement plan or not.
The very idea of retirement is of modern times, as prior to the 19th century, a retirement plan was unheard of. In those times, people worked till they became physically unable or died. Higher life expectancy and the many retirement policies that are available have made the retirement plan a part of a person’s career planning. There is a greater necessity to save for the rainy day and for the time when you cannot be gainfully employed.
These days many people choose to retire earlier than expected, some people retire as early as 40. One reason for this could be the higher salaries people earn and also the number of hours that one clocks in the daily working life. It is possible that such rigorous work schedule leads to early burn out and calls for the much-needed rest and recreation. Those who conscientiously retire early will definitely have a retirement plan worked out.
The financial security of such people motivates them to pursue some of their interests that had been put on the back burner because of their career commitments. It is common knowledge that as the years go by, the purchasing power decreases and the cost of living increases. Today, your unit of currency cannot buy what you could have bought ten years ago.
Some alternatives to the stock market are: Cryptocurrency, NFT’s and REITS.
Generally when you talk of a retired person, the picture that comes to mind is that of an old person who is at a loose end and one who finds the easy pace of life difficult to adjust to. A lot of odd jobs get dumped on that person because ‘he is doing nothing and has all the time in the world’. Actually, retirement can be the most productive part of your life since you had been working for others till then but on retirement, the time is for yourself; to do what you like to do. But I must tell you; this is largely a matter of one’s attitude to life. It is true that you may not enjoy the same lifestyle as you did. For some, the lifestyle was supported on company expense and for many others, it was on their own: salary, borrowings, inheritance and the like. And this is why a good retirement plan is so necessary.
There is no doubt that personalities and character are different in different people. While some may prefer a frugal lifestyle others may prefer an exciting and flashy way of life. Therefore, austerity and flamboyance becomes the key to retirement planning. Whatever be your lifestyle, planning for your retirement is as necessary as paying your taxes. If you have not already retired, get started now and work out a good retirement plan before it is too late.