The Secrets That No One is Telling You About Retirement

While you are racing toward the inevitable here is a little secret about retirement that no one is telling you about. No, they don't mean to keep it a secret the fact is most persons don't really know. So here is what you should know about retirement that no one is telling- Retirement Ain't What it Used To Be! Historically, retirement planning was based on a three-legged stool model approach. So our parents had the expectation and could comfortably retire with a company pension, Social Security benefits and their individual investments. But that retirement model has changed and you can no longer rely on company pension. Not only can you not rely on a company's pension plan but your anticipated National Insurance benefit is now in doubt as current funding method is being forecast to drain the available resources by 2029. All of this uncertainty means that you will have to take responsibility for your own retirement and you must move quickly because time is running out - So you've got to start planning your retirement now! While money is not the only consideration, the sooner you begin regular contributions to your retirement plan, the more manageable it will be to fund it with a portion of your income. Consider the following age guidelines and contribution rates: * Starting at age 25— invest 10-15% of your income until retirement. * Starting at age 35— the contribution rate needs to be 15-20% of income until retirement. * Starting at age 50— requires approximately 50% of income contributed to an investment plan in order to maintain a desirable standard of living. So what should you do? 1. Join Your Company's Pension Plan. If there is a plan at work join it as soon as possible. Your savings dollars should first go to your company's pension plan up to the company match, if there is one. Most employers provide some level of match, based on the employee’s contribution amount. 2. Get an Individual Retirement Account (IRA). After funding your company plan up to the company matching contribution, then consider adding addition voluntary contribution to the plan based on your age or start an IRA. Your devision will be based on which plan is providing the better rate of returns. 3. Start Investing. Get information on other investments and invest. You may want to consider government treasury bills, mutual funds or certificates of deposit. 4. Get help. Just as you would not leave your health to change you should not leave your retirement to chance either. “Strategies for Achieving a Comfortable Retirement- Yours” is a useful resource to get you started. Here are a few more secrets that they are not telling you – if Bahamian continue to plan for retirement at their current rate: 1. 95% of Bahamians will retire not being able to afford their retirement after working for at least 40 years. 2. 67% will have to continue working 3. An increasing numbers of retirees are now dependent on their families, government of charity for support. Now that you know the secrets, use them to your advantage and you'd have a comfortable retirement! Got a question about retirement issues you're facing - any question at all. Just Ask Glenn! Copyright © 2009 - Glenn S. Ferguson