Secure Your Future: Start Planning Your Retirement Now! - Essay Sample

Retirement plans are saving plans where individuals save money for later use when they become older, and they are unable to work. Different retirement goals are embraced that are focused on ensuring that the person lives a stable lifestyle when they grow old, and they become unproductive. Lack of retirement plan leaves people exposed to challenges of sustaining their lifestyles when they become old, and they no longer work. People need to be encouraged to begin saving resources while they are young and productive to secure their old age and ensure they are able to have resources that they need when they grow old. People with retirement plans have better older life than the people without retirement plans because they are able to afford healthy lifestyles that they require at old age.

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People need to save for retirement because of the uncertainties of the future. There is no guarantee that young people will continue to work until they die of old age. There are risks of losing their jobs and the challenges likely to face when they lose their jobs, and they do not have an income (Pienkowska-Kamieniecka and Damian 27). Having a saving retirement plan provides security to people in terms of being able to meet their needs during challenging times. The retirement saving plan also gives the people the opportunity to grow where the money saved is invested, and the person will get returns from the investment.

People also need to begin a development plan that protects the person from inflation, where the person uses the money they save on investment. The retirement plans from the state encourage people to invest the resources they save towards investment that will provide returns increasing the wealth that one owns (Pienkowska-Kamieniecka and Damian 28). Retirement plans offer investment opportunities for retirees when they begin to save little money and earn more interest. Inflation will happen in the long run; hence they will have a stable source of income when they retire. Inflation will continue to occur; hence savings will earn more income for the person when the investment begins to yield returns.

People need to have a retirement plan to avoid being a burden to their relatives when they grow old and are unable to be productive. When people don't have retirement plans, they end up relying on their children and other family members when they grow old, which is not sustainable (Chevalier et al. 518). People become a bother to their relatives who might not have enough resources to support their older family members. The family members have bills to pay; hence they might not be able to support their old family members. People need to have retirement to avoid being a burden to their relatives when they grow old and require financial support to be able to live their lives.

People also need to begin a development plan that protects the person from inflation, where the person uses the money they save on investment. The retirement plans from the state encourage people to invest the resources they save towards investment that will provide returns increasing the wealth that one owns. Getting credit gives the person the opportunity to get financing and complete the projects that allow the person to grow. Many governments offer tax-free investment options to encourage people to invest in their retirement. People should utilize the opportunity of getting tax exemption and invest when they have the resources to invest. Different financial institutions provide retirement plans where people invest their resources; therefore, people should use the opportunities to have retirement plans and secure their future.

People need to save for retirement because of the challenges associated with old age when people are no longer able to work and the challenges associated with the old age. Old age is associated with body weakness, which exposes the people to disease threats, and people require finances to get the medication that they need (Chevalier et al. 515). The retirement savings will enable the person to access health services because they will have the resources to use. Retirement reduces the burden that the relatives get when they have to organize fundraising to help their old friends and relatives to raise money for medication.

Saving for retirement helps in avoiding relying on social security. Social security is supposed to be the last resort; hence people should work on other alternatives rather than perceived as the only source of financial support. Many Americans depend on Social Security after retirement, but this can be solved through a retirement saving plan. This will be highly beneficial to them as social security is expected to be exhausted by the 2030s. To handle over-exhaustion, the social security committee proposed raising the retirement age to 69 and downsizing the benefits that the above-average earners enjoy (Voya Financial). To avoid the uncertainties of social security; therefore, individuals should start saving for retirement and start when they are young.

Many employers no longer offer pensions thus saving for retirement is a wise financial decision (Voya Financial). Traditional pensions have disappeared, thus creating the need for Individual Retirement Accounts. This is because the saving for retirement has shifted from employer to employee in the last decade as employers are focusing on reducing liabilities. Instead of pensions, they are now offering contribution retirement plans, which are the employee's expense. Without the pension, the employees should have retirement savings, which will benefit them once they retire or decide to work fewer hours. Retiring means that you will not earn a salary while working for a few hours means that you will earn less.

Saving for retirement provides access to a tax-deferred account. A tax-deferred savings plan provides an opportunity to postpone paying the taxes until the savings are withdrawn, which is after the retirement (Voya Financial). Tax-deferred accounts are also beneficial as they have a compounding effect that does not exist for a regular savings account. The savings can be reinvested after retirement by starting a business, therefore, continuing to get an income after retiring. The retirement savings, therefore, act as capital for those who aspire to be entrepreneurs.

Traveling around the world or locally is one thing that people hope to do when they retire. This is because they do not have to worry about the limits of the vacation as they are no longer working. However, traveling, whether locally or internationally, requires money obtained from the retirement savings. Through the savings, a retiree can comfortably finance their trips and have memorable vacations. Retirement savings provide financial freedom, which is otherwise impossible if you have no savings and depend on a spouse or children (Redfern). With freedom, the burden of debts will be reduced as any time you wish to spend and do want to depend on the family will have to borrow. With no income, banks are unwilling to give you alone, meaning that you cannot pay the bills or make any investments.

Saving for retirement eliminates stress emanating from lack of money, which is something that you do not wish to grow through after retirement. With savings, you will be able to cater to the expenses and emergencies and, therefore, not have to worry about life uncertainties. Money is the leading cause of stress among Americans. "Money is more of a problem than work or personal relationships" (Martin). Stress affects your health, and the more you are worried about how to cater to your expenses after retiring, the more vulnerable you are to stress. Saving for retirement will, therefore, prevent health problems as well as strain on the relationships. With the savings also you will be able to cater to medical expenses not covered by the insurance.

In conclusion, saving for retirement gives you financial freedom, so after retiring, you will not have to depend on your family. Saving will also provide an alternative source of income apart from social security, which is expected to be depleted by 2030 due to overreliance. Social security is supposed to be the last resort and not the only source of income after retirement. Saving for retirement is also a good financial plan in this time when employers no longer offer pensions. The savings accrue a compound interest, and after retirement, you can invest in a business and comfortably cater to your expenses, thus reducing financial stress. Saving for retirement is, therefore, essential in promoting good health.

Works Cited

Chevalier, Séverine, et al. "Unraveling the perceived reasons underlying entrepreneurs' retirement decisions: A personcentered perspective." Journal of Small Business Management 56.3 (2018): 513-528.

Martin, Emmie. "Americans Are More Stressed About Money Than Work Or Relationships—Here's Why." CNBC, 2018, https://www.cnbc.com/2018/06/26/money-is-more-stressful-than-work-or-relationships.html#:~:text=New%20data%20from%20Northwestern%20Mutual's,or%20work%20(18%20percent). Accessed 24 July 2020.

Pienkowska-Kamieniecka, Sylwia, and Damian Walczak. "Willingness of Polish households to save for retirement." European Financial Systems 2016 (2016): 27-28.

Redfern, Elizabeth. "4 Priceless Reasons Why You Should Save Money - Cashfloat". Cashfloat, 2020, https://www.cashfloat.co.uk/blog/money-borrowing/why-you-should-save-money/.

Voya Financial. "Retirement Goals: Why Bother Saving?". Voya Financial, 2020, https://www.voya.com/articles/retirement-goals-why-bother-saving.

Zeka, Bomikazi. "Most black South Africans don’t save for retirement. How to change this." (2019).