Having A Hard Time Upon Retirement

Discussion in Retirement Plans started by gracer • Aug 26, 2016.

  1. gracer

    gracerActive Member

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    Hello everyone! :)

    What I'm going to share serves as a reminder for all of us to start saving for our retirement early on in life before it becomes too late to save.

    Well, my dad used to have a good and steady flow of income back when he was still at his prime. Together with his big income, he also got used to an expensive lifestyle. Dining out everyday with his moneyed friends, spending thousands on a daily basis. He was able to buy lands and was able to build a good house for us though, so I'm really thankful for that. He was able to have the luxury of buying cars too. What I'm really thankful for is that he was able to provide well for my education, and even for the education of his grandsons and granddaughters from my sister. My sister died while the kids were still young, and despite having their dad with them, it was still my dad who volunteered to shoulder their education.

    What he forgot to do though was think of his retirement years. He was never able to save a dime at all. Now that he is already past the retirement age, he's totally broke and he doesn't want to stop working because he still has hopes that he could earn his millions one of these days. I do think that it's too late to think about getting rich at such a very old age though.

    A valuable lesson I have learned is to always plan and save early for retirement because I don't want to go through what my dad is going through right now.
     
  2. djdontpay

    djdontpayActive Member

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    Well, that's a common thing that has happened in that generation. Also, they were screwed by governments and an unfriendly financial system.

    Honestly though, you can't "save" for a retirement. It will never be enough.

    But, what you can do today, is use retirement and pension plans offered by various insurance companies, wherein if you pay x bucks a month, you will be paid [say] 10x a month when you retire after 35 years.

    Here's the basic calculation - you would need a corpus equivalent to about 25 times your current annual expenditure if you're in the 25-35 range, so as to have a decent post-retirement life. But, the catch is, you can't possibly save your complete annual income each year for the next 25 or 30 years. Also, the capital market linked retirement accounts could easily turn to dust just like they did for the baby boomers. So, how else can you pay for your retirement? Simple, look for guaranteed pension plans- cheap ones and invest in them instead.
     
  3. Corzhens

    CorzhensWell-Known Member

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    This is a good thread for old people like me. I am nearing retirement and at this early (still 7 years to go), I am already thinking of my survival in terms of finances. Where will I get the salary I am getting now when I retire? Naturally we have to cut down on expenses and our way of life will have to drastically change. It's really a sad thought for me. I just hope that our plans of buying land for an apartment would push through so we can have a steady income from the rental of the apartment.
     
  4. Aree Wongwanlee

    Aree WongwanleeActive Member

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    When I was younger and still working full-time, I didn't really think about the day when I would retire. I was rather busy bringing up my children. Now that my children are all grown up, I thought it's time to take a break. I did try it for a while. A very short while. Then I got back to work again. It's working that keeps me alive. Now I am still working. I don't really have to since my son is taking care of all the bills and he can well afford it but, like I said, it's working which keeps me alive. I suppose I will really retire when I breath my last.
     
  5. Lushlala

    LushlalaWell-Known Member

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    Oh gracer, your post is talking directly to me! Your dad did such a noble thing taking care of you all, which is why it's such a shame that he forgot to save a little something for himself :( Was he not at least paying into a basic state pension plan? I honestly think he ought to focus more on saving just enough for his retirement (although it can never really be enough) as opposed to killing himself trying to make millions.

    But hey, what do I know; I haven't even started doing that myself, and I'm at an age where I ought to have started a while back. I'm not old yet, but I feel that by the time I'm able to start saving, it will mean having to work for a while longer than my peers, probably well into my golden years, in order to have something anywhere near adequate enough to sustain myself in retirement :( It's not easy though, because in order to do that, I seriously need to get myself a good job with good prospects. As it stands, I'm having to make do with a freelance part time job that pays me peanuts!! It's truly worrisome.
     
  6. Aree Wongwanlee

    Aree WongwanleeActive Member

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    Investing in our children is actually one way of preparing for our old age. I have never regretted spending my working life bringing up my children. I only have ten children - seven boys and three girls. There is no guarantee that all my children will take care of me when the time comes but I know I have done my duty. Anyway, so far so good. My children are all grown up and have their own families but they have not forgotten their father.
     
  7. davos

    davosActive Member

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    For each of their own. When I reach an older age, I'll just move to another kind of business I'd be able to run with my resources and experience. Like a goods store or something like that.
     
  8. Aree Wongwanlee

    Aree WongwanleeActive Member

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    Good idea. If you have the resources and experience, running a goods store online would be a very strong possibility. The world is moving online. Buying and selling online is something that has become the new normal for many people. So what kind of goods are you planning to sell?
     
  9. xTinx

    xTinxWell-Known Member

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    Thank you for sharing your story, @gracer@gracer. It's a sobering thought. Somehow I'm glad I have a pessimistic streak and worry about my future every now and then. Otherwise, I'd end up like one of those party animals who live for the moment in YOLO or Carpe Diem fashion and totally forget to prepare themselves for bigger and difficult-to-shake-off realities. I learned a lesson from my grandfather and relatives whose lives were lived like your dad's. Now that they're old, they have no pension to look forward to. Financial education is really important. It helps align your financial priorities and prepares you for the future.
     
  10. gracer

    gracerActive Member

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    Thank you all for your positive replies and reflections. Everyone of us will indeed eventually get old soon and we won't be as productive as we are now, so it's really important to also think about the future and not just of the "now". Although it's important to live and cherish the present, there's also the reality of an uncertain future that we ought to prepare for in order for us to be able to survive our retirement years.
     
  11. explorerx7

    explorerx7Active Member

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    This problem of many persons not being able to comfortably cope financially after retirement is a universal one. Many retirees worldwide have had to be seeking employment after retirement because their retirement income cannot keep up to the frequent spikes in the cost of utilities and goods and services. It seems no matter how much the ordinary person may save for retirement it's never enough to allow them to live comfortably when the time comes. Sometimes it's the goodwill of their children that helps to enable them to survive.
     
  12. Jamille

    JamilleActive Member

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    I don't want to be a burden to my child when the time comes so I'm actively saving for my retirement. My parents taught me to pay forward and they never required me to support them so I want the same thing for my son. I'm proud of them for the way they have watched out for their own finances to ensure that their children will never have to worry about them in this department. Sadly, some parents are unable to save because they have to raise and send many children to school. They end up depending on their children when they're no longer able to work. This can create problems when the children themselves are starting their own family.
     
    #12Jul 21, 2017
    Last edited: Jul 21, 2017
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