What will you do in retirement?

What will you do when you retire? Hey! I’m barely 20, 30 or even 40 years old and retirement is far away! Why are you making me think about retirement now because I won’t even get to it?! , Until retirement I have to buy my house, support my children and I have time to think about retirement; around 55-60 years old!

Time passes extremely quickly. If you have children, you have the opportunity to see them grow up and thus see how quickly time passes.

In financial planning we have two extremely important resources: time and money. If money is a reversible, inexhaustible resource (because we can make it, if we have exhausted it), time is an irreversible resource because we cannot give time back no matter how much we want it and no matter how much money we have.

What will you do in retirement?

What does thinking about retirement mean? Most of the time, this awareness comes with the decision to save for our future.

If we want to keep our lifestyle in retirement: to travel, to have our own house or to have outings to good restaurants, it is necessary to shape our future and, implicitly, our retirement state, starting now, whether we are 20 or 35. The state cannot support us with such a lifestyle and, therefore, it is necessary to make a decision NOW for TOMORROW, to have what we want.

If the pension is small now, then when we are retired; the pension will be even smaller. Why? Because the birth rate is decreasing, the exodus is increasing, and life expectancy is also increasing. The problem is life expectancy: the fact that we will live longer, but with less money.

Pension system

The pension system was created by German Chancellor Otto von Bismarck in 1889. This system assumed that people with low incomes would benefit from a sum from the state at the age of 70, provided that they had contributed for 30 years (which represented only 1.7 percent of their total monthly income). Later, this contribution became mandatory for employees.

In 1957, the system was reformed and resembles the current system when the contribution is made by both the employee and the employer.

Don’t leave your pension, your financial peace of mind, for later!

Now you may be young and you think that time must pass and you must have a higher income from which to save. This is actually a lie that you tell yourself. Here’s what actually happens!

Source: Ziarul financiar

All this is due to early awareness: of its use, as well as the power of our money. By involving ourselves, at the same time, and perseverance through constant – monthly contribution, the multiplication of money allows us to obtain what Einstein called “the eighth wonder of the world” – capitalized interest – a large sum of money that can support us in an optimal way of life at the age of retirement.

If we save, we lose money!

I want to refer to this statement by Robert Kiyosaki: “if we save, we lose”. Why do we lose? Because we do not receive a large return on our money and thus we cannot support ourselves at an optimal or even efficient level (to pay for our maintenance, food and medicine) at the age of retirement. As much as we want to have a high standard, it is necessary to invest money

In decades, when we retire, the money we have saved will no longer have the same value and will not allow us to have an optimal retirement, here I am referring to traveling.

What will you do in retirement – a risk you assume!

Optimism helps us enjoy life, to have a smile on our faces, but that does not mean that we should do nothing about our pension, but only be optimistic that the state will support us in retirement.

This did not happen even under Bismarck’s regime. Life expectancy was much lower then than now and very few people benefited from a pension. The purpose of the pension system was to support people with low incomes.

Let’s be optimistic and act now so that we can enjoy the time we have at our disposal in retirement: let’s walk, let’s allow ourselves to relax without worrying about money!

“Pension is not poverty!” is a motto that I created together with my fellow financial consultants as part of an awareness and accountability campaign, also regarding the achievement of this financial objective.

Pension, unfortunately, leads to the idea that then, at retirement age, we will no longer have so many expenses, that our children will be grown and will support themselves, and all we have left to do is “live our days as best we can”. Do you want this to be your perspective and reality at retirement age?! Have you seen those old people who come to our country? They are relaxed and cheerful. Have you asked them what they did? Most people will not tell you that they waited for this period and did nothing but work, but will tell you that they saved and invested their money so that now they don’t have to worry about tomorrow.

And a realistic perspective

They say in financial planning that if you can’t afford to allocate money to support your child, then you need to allocate only for yourself in order to be altruistic, not selfish as you might think. You are altruistic because you don’t determine your child to take care of you, to supplement your pension; you have created your own fund from time, from which you support yourself.

At what age do you want to retire from activity and what does your lifestyle look like then?

Now is the time to achieve it!