If we are no longer preparing for retirement, what should we be preparing for and why?
Looking at the evidence its easy to see that because we are living longer we should be retiring later. This is so that we have more time to accumulate money for a longer retirement. Bismarck and all that. But the ultimate issue is to define what retirement is? Or perhaps more pointedly, what a financially independent retirement is?
Until you have this definition in the bag the rest is a discussion of hypotheticals. So here’s a shot at a description: “When you can stop working for the money and the money works for you.” What is so difficult about that?
Quite a lot as it turns out. If the “figures” are to be believed anywhere between five and twenty six percent of it fund members are financially independent when they retire. The rest are doomed, in varying proportions, to need help from their friends and families, to work until they drop or to suffer a terrible, demeaning loss of their living standards.
Why is this?
Is it a wonder then that the number of people retiring with financial independence at a formal retirement date is so low?
PO Box 652
011 465 7940
WILL YOU STILL NEED ME, WILL YOU STILL FEED ME, WHEN I’M 64? ~ Beatles – Sgt Pepper Album Read More..
Ducks in a row Read More..
How much can you invest in retirement funds by way of tax-deductible contributions? Read More..