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Five Factors That Can Ruin Your Retirement

In House Magazine
19 Dec 2019
Five Factors That Can Ruin Your Retirement

Enjoying your retirement requires preparation starting from your productive years. The only thing you can rely on during retirement is your retirement savings.

Retirement age typically ranges from 55 to 60 years old. To fully enjoy your retirement, it's important to prepare adequately.

Don't let your retirement be disrupted by some common pitfalls that employees encounter when planning for their retirement.

  1. Feeling Inadequate Income

Having a salary that is just enough for daily expenses often becomes a reason for not being able to set aside funds for retirement. Nevertheless, it is necessary to start saving and preparing for this situation.

To achieve financial security in retirement, start saving from now on. Create separate savings for monthly expenses, emergency funds, and retirement funds.

  1. Being Spendthrift

Another key aspect of retirement preparation is avoiding excessive spending. Differentiate between needs and wants. You can set aside around 10% of your income for these needs or adjust it to your specific requirements.

Save money in relatively safe investment products with attractive returns or interest rates. It is advisable to survey several financial institutions and seek advice from relatives who use savings as retirement funds.

  1. Utilize Time Wisely

Time passes quickly, and many people fail to realize that their productive years are diminishing. You need to be mindful of this. As you age, the risk of illness increases, which may reduce or even halt your productivity.

Even without the risk of illness, as retirement approaches, productivity naturally declines. So, start controlling your expenses, increase your income, reduce unproductive debt, and increase savings and investments with the goal of preparing for retirement.

  1. Forget about Employer's Retirement Benefits

Everyone has a different lifestyle. Don't solely rely on employer-provided retirement benefits. After all, you never know how long you will work for that company.

You need to be smart and diversify your retirement investments. Remember, retirement is the time to enjoy the fruits of your hard work, so it must be well-prepared.

  1. Health Condition

Health conditions can change dramatically if you neglect to take good care of yourself. Never assume that you are always healthy and fine, which can lead to neglecting retirement preparation.

Don't be complacent when you're still young and appear to be fit and healthy. You still need to prepare as you age because health risks also increase.

Preparing for retirement is essential to ensure a comfortable and secure future. By being mindful of these factors and taking the necessary steps, you can protect your retirement and enjoy the fruits of your labor.

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