Have you planned your retirement fund, mommies?
As parents, we often focus on education insurance or health and life insurance. As a working mom, we might already have financial planning, however, one that is important, but often forgotten factor in a family's financial plan is the Pension Fund. Why is it important to plan the pension fund? The following facts:
- 1 of 2 people of working age said that retirement planning is not started early making them less prepared for retirement.
- 1 of 3 retired regret not planning for retirement early.
- Ahead of the retirement, 1 of 2 people worry about not having enough money to live comfortably after retirement.
- Only 43 percent of people in our society who has set up retirement.
- 34 percent of the money they saved in the form of savings and bank deposits, which provide returns relatively small.
Since the productive age, we should think of where the income to pay the cost of living when we are no longer actively working. Commencement of retirement age for each individual can vary, ranging from 45 years to 60 years. Today, in general retirement starting at the age of 55 years.
Now, try to imagine if we are still alive from age 55 years to 75 years, then for 20 years we have to figure out how to fund life. Especially, for young families which have a high lifestyle, certainly nothing that would lower the standard in retirement later.
For example, a family currently has a monthly income of USD 1,428. Then, every month is used for living expenses of USD 1,071. If using the assumption that the price increase of 10% per year, the cost of his life would be USD 7,143 per month, or about USD 85,716 a year over the next 20 years! It means if it wants to maintain the standard of living, we must have the equivalent of USD 2071 of assets if you want a comfortable retirement.
The target to meet the needs of retirement financial planning is called the pension fund. We can join a pension plan from various financial institutions or can also prepare ourselves by making investments concoction. Each family can have a different pension plan. Thus, there is no harm in every family prepares pension funds assisted by expert financial planners simply to cross check or make it from scratch. Most importantly, retirement planning should begin now. The quicker to prepare, the less the burden of the investment required. Live a beautiful life!