How to save before retirement


Retirement is when a person is either willing or forced to end their job or occupation as they must have served a certain organization or body for several years. Most countries have retirement ages documented in their laws, where this affects mainly government workers and are then referred to retirees or pensioners if they receive pensions after their retirement. These so-called pensions have become some sort of issue as pensioners have been having trouble getting them and as a result of that, a good number of them have lived below average lives and lost their lives too. All this could have been avoided if only they had a good retirement plan. Saving for retirement should be behind any worker's mind and they should know that depending on the government or the organization they worked in for retirement pays is not a solid plan at all.

The first way a person could save for retirement is to set up a private pension plan with a trusted pension company, most preferably one who is from a solid bank or have good backings. This pension is set up linking up part of your salary from when you are working to be automatically going to your pension account, the pension company usually promises a certain percentage back for the pension you have with them. So, if you have retired, your pension is given to you either at once to start up some business or paid to you monthly or quarterly depending on the agreement you have with the pension company.

Another way to save for retirement is to open a small business. People who work a lot might have this challenge but it is a very smart idea and it involves good planning and trusted workers. For a busy person hoping to open a business whether it be small scale or medium size, you would need people you could trust to watch over the business so you don't get duped. It's most preferred you do something that you could settle in after retirement or even expand after you settle in. People could open shops or online businesses, this is all good plans because there have been cases of people who called it quits on their other jobs and focused solely on their businesses because of the encouraging returns. It is advisable to start the business while you are still younger rather than wait for your closing years, this is because there might be need to leave that job and change to your business, so you would need your fitness and vibrant self to do so. 

Another intelligent way of saving for retirement is by setting up a fund, a personal fund. This is somewhat of a pension type of saving, but with slight differences because you can set a fund for anybody or any cause. So in this case the fund is for the worker or in most cases their immediate families. Also unlike a pension scheme where you have to do funding every month and at a fixed amount, you could have different amounts of money deposited at different times. A fund is more flexible than a pension plan too.

The other way to save for retirement is to do investments. Investments could be in the method of buying shares or holdings of a company. Whether the company be small, large, or even just starting, you could invest in the company if you see great prospects in the company's future. Even as a worker, you might already start getting returns on your investment, it now paves  way to do other retirement plans. Investment is a very basic and easy way of planning for the future because you could just input the money and let another person do the work and you get paid when profits are realized. You could also do investments in another person's name especially family members so they too would not suffer because of your retirement. 

Many people think children are retirement plans, which is a very wrong notion. This is because the future of the child is not so sure. The child could also grow up and decide not to cater for the parents who must have possibly retired. This is why you should have other plans in place rather than focusing solely on the child or children whose future is certain. You could sue an organization if they screw up your retirement plans but you can't sue the child if they aren't helping out after you have retired. So right now, if you don't have a retirement plan, do so now, whether you are an employer or employee, it works for everybody. Stay up on for more.

📸 Monica Silvestre

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