Retirement planning refers to the allocation of financial resources towards retirement. In most cases this means setting aside money or other similar assets for the purposes of collecting an income once you’re past working age. Financial independence is the goal of retirement planning. Most people hope to be able to survive without working at all, so that they can just travel or spend time with family. Getting to this point, of course, takes some time and a lot of attention to detail through the years. Getting ready to retire is a process that ideally starts as early as possible in one’s working career. Allowing our investments more time to earn for us is the best way to build our portfolios.
One important factor in retirement planning is the fact that we now live much longer than before. A child born in 1900, for example, had a life expectancy of 47.3 years. For a child born in 2007 the life expectancy has increased to 77.9 years.
Common Retirement Planning Issues
Planning for a much longer lifespan involves addressing problems not face by earlier generations. Some of the key issues include the following.
- Paying for retirement
- Health Care
- Estate Planning
- Retirement Lifestyle
Developing a successful retirement plan involves carefully considering a wide range of issues and potential problems. Finding solutions to these questions requires both personal education and the guidance of knowledgeable individuals. The key is to begin planning as early as possible.