Is FIRE Your Goal? Why Not Plan Your Retirement Now?

While most would agree that planning for retirement is important, it’s curious that many still don’t feel an urgency to complete their retirement plans. This is likely because retirement seems like a distant event. However, the reality is that retirement might come sooner than we expect. The adage, “People don't plan to fail, they fail to plan,” serves as a good reminder. 

Our retirement future needs planning now. Everyone needs a proper retirement plan and action to avoid unpleasant surprises in the future. What myths delay us from planning for retirement?

Myth 1: My Kids Will Take Care of Me

In the past, elderly parents often lived with their adult children after retirement. However, with rising living costs, some children might struggle to support their families, let alone elderly parents. When everything is uncertain, why burden your children in the future when you can prepare for retirement now?

Myth 2: I Have Time

This is about whether there is enough time. Some people think it’s too early to start saving for retirement, while others feel it’s too late. Regardless of when you start saving, time and the power of compounding are your best allies in building a retirement fund. Whether you are 25 or 45, starting late is better than not starting at all. Of course, the earlier you start, the more time you have.

Myth 3: I Won't Really Retire

Life is full of choices. Working until you are 70 because you have to is a situation no one wants. However, if you choose to work by your own will, that’s different. Choosing to work after retirement is one thing, but being forced to work hard to survive is another.

Myth 4: I Won't Spend Much After Retirement

People imagine they can cut costs after retirement. In reality, if you are used to a certain lifestyle, it’s not easy to adjust. Moreover, we live in an environment where inflation is constantly rising, and medical costs are increasing. Even if we cut monthly expenses, with inflation, spending might still be the same or even higher. To ensure a financially secure retirement, our mindset needs to change.

Without proper retirement planning, you might have little or nothing when you retire. Failing to plan during your working years could lead to the worst-case scenario in retirement. So, let’s start planning now for a secure and comfortable future.