Do you have enough savings for retirement? At a young age, you have no plans whatsoever to start saving up for retirement. You keep coming up with excuses to avoid saving. These are some of the reasons you bring up to not use your income for retirement funds.
You’re still young
When you’re still in your 20s and 30s, you don’t think about what life will be like at 60. You can’t envision your life in a distant future. You only think about what you have now and how you could enjoy your current money. The problem is that you won’t be young much longer. Before you know it, you’ll already be close to retirement, and you still won’t have saved enough money.
You have other priorities
When you’re young, you use your money to travel to different places or buy new gadgets. These are your priorities right now since they make you look cool. You might even have a bucket list that contains things you want to do in life, and planning for retirement is not on that list.
You don’t like to invest in something uncertain
You don't want to invest for retirement because it requires you to save up for the next 15 to 20 years. A lot of things could happen within that period. You think that preparing for an extremely distant future doesn't make sense. You might even waste your investment. On the other hand, you're already enjoying your income now, and you would rather use it right away.
You’re not earning enough money
If you recently graduated, your income might only be within a low range. You still don't have enough money to invest in a retirement fund. You want to wait until you're old enough to be in a middle to senior level management post since you're confident that you're going to have enough money to set aside for retirement.
Stop the excuses
You might have other excuses aside from these examples mentioned. Don’t allow these excuses to stop you from investing. You need to start now. Look at different types of investments available for retirement. Find one that’s suitable for you.
You could also upgrade your investment later if you start earning more than what you have now. You can start small and work your way up. It’s like building a war chest that doesn’t need to be massive right away. Besides, you have several years to keep adding to your fund.
Another thing you need to remember is that you’re not getting any younger and you might not work as hard as you do now. Therefore, you need to save money while you still can. If you lose your job, you will already have enough savings.
If you reach retirement age and you have failed to save enough money, you can consider equity release over 55. You can sell your property in exchange for money, but you don't need to move out right away. You can stay in your house until you die. Your loan will get paid using the total sale value of your house