Youa re responsible for your own retirement planning. If you think your government will take care of you at retirement, think again!
I spoke at a Men’s Retreat last Saturday where we discussed different types/levels of preparation for retirement. We came to the conclusion that many people nearing retirement age are doing nothing to avoid being poor in their final years. They are still carrying debt and mortgages that would throw a wrench into what is supposed to be the best years of their lives.
I checked on my own state pension forecast just last week and I found out that the government’s dream for me at retirement is £164.35 a week, £714.36 a month or £8575.55 annually! I will accept that if, after working 40 hours a week for 40 years, I want to live at a level that is less than 30% of my current living standard. That is not what i want. So since this is the best the government can offer, the onus is on me (and you too) to take responsibility for my own retirement. The state pension should not be your main income source at retirement; regard it as an extra. Work on your pension now!
There are three levels of retirement that you can aim for:
- Secure Retirement – no debt but no money
- Comfortable Retirement – no debt with some money
- Rich Retirement – no debt and lots of money
The common denominator in the (no poverty) levels above is No Debt. The best preparation you can make for your retirement is not to have any debt when you get there.
To achieve any of the levels above, you have the do the following unfailingly:
- Dream up the kind of retirement you want to have – the more grandiose it is the better.
- Plan how you are going to achieve that dream. A plan has hope within it.
- Diligently carry out the plan unless your dream is just a wish in disguise.
- Decide to sacrifice the pleasure of today for the dream of tomorrow. Be committed to your plan.
- Be alert – watch out for those who want to have their dreams fulfilled at the expense of your own.
Without at least these five steps, you may be planning to be poor at retirement! Then what legacy will you be leaving behind? Poverty or Wealth?
A healthy retirement tomorrow begins with a little emergency fund today.
If you’ve got something else to add, please use the comment box below.Niyi Adeoshun
Money Management Coach
Author of "The Price of Financial Freedom"
(3 Essential Steps for Breaking the Cycle of Debt)