A popular adage says, “Money saved is money earned.” But, unfortunately we fail to implement it in real life situations, a fact attested by recent research reports globally.
Saving money is all the important for those who are planning to have a sound retirement income plan. As one approaches old age one is faced with a lot of challenges and uncertainty. Increasing health care costs, decreasing level of social security benefits are only some of them. To top it all, there is this problem of inflation, which has become a growing menace in today’s consumerist economy where market forces dictate everything. Inflation rates also keeps on varying from region to region making it all the more difficult to devise a uniform strategy to combat inflation.
Planning a retirement plan can be really be a daunting task for beginners. Saving money through a sound retirement income plan therefore has become all the more crucial in this current economic scenario. Points to remember when planning a sound income retirement plan are as follows-
To have financially viable retirement plan it is vitally important to assess and address the mordant effects of inflation.
There is also the need to address unwanted risks like rising healthcare costs. A retiree who is now 65 years old will need to allocate $180,000 to meet his medical costs only, a fact attested by reports of a premier research institute. So, it makes sense to invest wisely in medical insurances, which will take care of all medical woes in the long run. A good retirement planning program also requires one to ensure a predictable stream of income that will keep on increasing over time. One can easily combat the collapse of assets by adopting a conservative withdrawal rate of 4 to 5%, a fact attested by survey reports globally.
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