Eye Opener: A study by American Bureau of Labour on Retired People who started working at Age 25
At the age 65:
1% were wealthy
4% were maintaining their standard of living
9% were dead
23% were still working… can’t afford to quit
63% were dependent on children & charity
You need to create sufficient wealth during your earning years to retire peacefully…
Many companies today do not have traditional pension plans.
There is often no specific or convenient time to start retirement planning. But the sooner you start, the less hard you and your money will have to work.
The more time you have before you'll need to access your retirement funds, the more opportunity those funds will have to grow. Thus the investment amount needed will be considerably less. So don't delay planning for your retirement any longer. Make a commitment to start your planning now and put the power of compounding returns to work for you. If you start saving for retirement now, you can attain long-term control over your finances and ending up your life in comfort.
For example, if you open an individual retirement account now by investing Rs.50,000 and start contributing to it each year , by the end of the first year you will be having Rs. 50,000 investment, plus any income it has earned. Now you've got Rs. 50,000 earning interest plus interest earning interest. And on top of that you'll contribute another 50,000 the second year. The entire sum will earn interest and so on. At the retirement age, all those contributions and interest will be worth much more than the original amounts
It used to be that retirement wasn't all that serious a life change to consider: people didn't often expect to live much past their fifties, and certainly did not view their post-working years as a time to reward themselves. If expenses mounted beyond their expectations, their children tended to assume the role of financial supporter or caregiver.
The most advantageous way to invest for retirement is to take advantage of various opportunities to avoid income tax on retirement investment earnings.
Being part of a couple gives you some advantages in preparing for retirement. Depending on your choices you can have two incomes to draw from,. If you work for different companies, you'll have two different EPF accounts, and so there would be more options available. If one of you becomes jobless or becomes disabled, your partner can help to make sure financial plans stay on track.
You have a partner to work with toward your joint financial goals, but you'll still want to take an active role in investing. It is important to check whether both of your retirement plans offer similar features? The most important step you can make is to take full advantage of the retirement investing opportunities available to you.