Tag Archives: retirement

never retireWhile it is becoming increasingly popular to retire early or achieve financial freedom before 65, there are quite a few reasons why you should never retire.

People are Living Longer

It is projected that in 2050, over 20% of the population will be 65 years or older. That's up from 12% in 2000. With more people living longer, there comes more time to enjoy life and work if you choose to. 65 doesn't automatically mean you have to give up your job.

In fact, 65 doesn't mean a decline in health or physical capabilities, so if you want to work, you shouldn't let age hold you back.

You should never retire just because of the stigma around age. In fact, adults are expected to live to at least 84 years once they make it to their 65th birthday. That's almost an extra 20 years. Can you imagine being retired for 20 years?

No Retirement Security

It is well known that saving for retirement is important. However, many baby boomers, Gen X'ers, and Millennials still aren't saving and investing. This leads to a lower amount in savings, and a lower amount of money that can be used once a person has retired.

You should never retire if you feel you can't make ends meet. Even if you can afford your lifestyle, money is never guaranteed. Having a job, even if part-time, or a side hustle can offer you more flexibility, and money in your pocket. ...continue reading

image2Finance, pensions, and savings are always a hot topic for people under 35. People are living longer and with the retirement age continuing to rise, the question is, how can young people adequately prepare for later-life?

There’s no doubt that we should be doing this, though, and financial planning isn’t something you leave until you’re in your 40s or 50s. 

It’s difficult to talk about money. A report by Fidelity found that although 92% of women want to learn about financial planning, 80% said they refrain from talking about money with family and friends. When you think about the student or credit card debt that a lot of us are in, it can be embarrassing to discuss this with friends – after all, we’re told that financial matters should be kept private.

So what should we do? Of course, my advice is always to warn against burying your head in the sand. If you’re worried about money or need help with financial planning, there are countless resources out there to help.

Younger people, especially millennials, have a reputation for being careless with money, but I don’t think that’s true. We’re savvy and when it comes to research, I like to think we’re pretty good at it. I know I’ve never taken a financial decision lightly and there are so many resources out there these days, which makes things much easier.

I think the key here is to take action now. Yes, that’s much easier said than done, but taking action means different things to different people.

For some, it means having funeral costs sorted out in order to beat further price rises down the line. For others, it means simply opening a high-interest savings account and storing away $100 every month. Investments are another option too, and although they require a little more research, they can really pay off. It all depends on your personal circumstances and what suits your current situation.

It’s true what they say – the sooner you save for retirement, the better. The ‘golden rule’ of saving around 10% of your annual salary is certainly a reasonable amount to strive for, and shouldn’t impact too much on your day-to-day living. If it does, reassess what you can afford and aim for that, with the overall goal of slowly bumping your savings up to the recommended percentage. It means you don’t need to play catch-up when you hit 40, where you’ll only end up needing to save a higher percentage to make up for it.   

1 Comment

I've never been in major debt in my life, mainly for one overriding reason: I don't like the idea of owing anyone money.

I'm in favor of good debt — such as getting a mortgage to buy a home, or a student loan to attend college, up to a certain point — but owing a company or someone money has always left me with a nagging feeling. I'm even happy to pay an annual fee for my rewards credit card so my family can use the reward points for free hotel rooms during vacations — but only because we pay the monthly bill off on time and don't pay interest.

Here's an example of how crazy I am about avoiding debt, even though it was only $20 from a friend:

In August I went with my daughter to her middle school for orientation, which included buying gym clothes. I mistakingly thought a credit card would be allowed to buy the items, so I left my checkbook at home and didn't bring cash.  When I found out that only cash or check were allowed, I borrowed $20 in cash from a friend who was there with their daughter so that I didn't have to return to the school and buy the stuff later.

A few hours later, I made a point of going to an ATM to withdraw $20 and deliver it to my friend. It was an obligation I wanted to fulfill that day, partly because I wanted to thank them for the quick loan, and also so I wouldn't forget to pay them later.

My point is that even with a small amount of debt between friends, debt can be a bad habit that can easily get worse before it gets better.

Saving for a nest egg of debt

I have a desk calendar from The Onion, the satirical news site, and a recent entry had this headline: ...continue reading