Retirement has always been one of the parts of life where people can just sit back, relax, and enjoy the fruit of all the years of their labor. It is a beautiful phase of life, and people tend to look forward to it as they reach the end of their careers, and have significant plans about how they want to spend it. People think of this phase of their lives as a time to travel, pick up hobbies that they have always wanted to, and explore new aspects of life. Windward Financial Services Provider is one such company that can help you understand how much you need to save to have the retirement that you have been dreaming of.
When it comes to retirement, most people live off the pensions and savings that they have earned through their lives. They are highly dependent on this as they no longer have a sustained way to earn income. But how does that translate to the changing times and the developing economies?
The Retired Life
A lot of senior citizens nowadays are finding it hard to maintain themselves and live off their pensions. Because of the shifts in the economy from when they retired, they have not been able to do the things that they wanted to do. A recent survey conducted by USA today shed light on this topic. The results of the survey show that 25% of retired individuals wanted to use their savings and pensions to travel, but only 13% thought that they had enough to do so and sustain themselves.
The Problem #1
The problem lies with the planning that goes into the pensions and savings that people tend to carry out. For starters, a company that provides a pension to an employee will only do so concerning the economic situation of that time. However, with things becoming more expensive and new markets emerging, the pension might not be enough to sustain the individual in the future. Some corporates do implement schemes which increases the pension amount keeping the financial ratio in mind, but the number of companies that implement this is fewer than one would expect.
The Problem #2
A lot of times, the amount of savings that people have plays a huge factor into how well situated their future can be. People always tend to save by the current economic situation, rather than what it would be in the following years. Thinking that having 15,000$ to spend per year might be enough for now, but it probably won’t be enough when you do retire, years down the line. The key is always to plan, and keeping in mind that the rates of various things are always going to go up, rather than down.
Predicting market trends is not easy for everyone, especially for those who aren’t well versed in the field of finance. Thankfully there are always individuals and companies that are specially trained in the field, to be able to provide clients with financial advice so that they can have a more secure retirement.