It is too bad to realize only when it is too late that saving for retirement translates to a happy retirement. The retirement years are called the “golden years” for a reason. That is the period in life when you can sit back and enjoy the finer things in life without worries of career and other pressures that plague the younger generation. Saving is an integral part of enjoying your retirement. Here is why you should start saving for your retirement.
Saving Reduces Your Taxes
There are added financial benefits to saving for retirement. You can make tax-deductible contributions to a traditional IRA, which reduces your taxable income. You can also do a voluntary 401 (k) plan, which helps you make tax claims. The good thing is that you can put these funds into a retirement investment fund, which will grow them such that the amount will be significantly higher at retirement.
You Will Not Be a Burden to Your Children
Being financially independent in your old age is a big relief to your children, who would otherwise have to look after you, whether they welcome it or look at it as an unwelcome burden. Living with your children, especially in old age, and in a rented apartment, is just awkward. The other option would be to have your children commit you to a home, which leaves them with pangs of guilt.
As a financially independent retiree, you can live your own life, seeing your children when it is called for, not because of forced circumstances. You can hire a helper and live a comfortable life without further burdening your children.
You Will Not Rely on Welfare
It is your right to access the welfare system as a senior citizen, but it would be better that you use it only when it is really necessary, but not because it is your first and only option. Welfare is very limiting – you cannot go for a vacation on welfare, or dine at your favorite restaurant. It is important to save if you don’t want to spend your retirement envying the good life of those around you.
It Is the Best Investment
No investment beats money in the bank. Your home equity may lower in value, as seen during the housing crisis of the late 2000s. But money in a bank account will rarely depreciate in value, making saving for retirement a better option.
We can help you set up your savings fund!