3 Shocking Truths About Early Retirement All Millennials Should Know
A lot of millennials seem to take their work for granted, failing to save and prepare for an inevitable future beyond work. But, as Aristotle said, “Good habits formed at youth make all the difference.” By being prepared for retirement, you’ll be able to enjoy life when older.
Early retirement is a privilege. It is a sign of life lived with careful consideration and planning. It is only when you have put aside a sizable nest egg that you can afford to stop work and enjoy your independence.
The following truths about early retirement will shock you.
Pension isn’t guaranteed
Unlike the time of Generation X when the government pensions were a reliable certainty, it will be different in the future. With economic instability and financial devaluations, you will be forced to rely more on your own savings than your employer’s or the government’s.
It is better to start making plans early so you won’t have to keep working when you are supposed to be resting. A percentage of your earnings should be kept in a separate account each month. Consider alternative investments such as stocks and bonds to diversify and multiply your income sources.
Your health is at risk
The joy of early retirement is staying healthy to enjoy the fruits of your labour. However, when you spend time in and out of the hospital, you forfeit the exciting life you had planned. You may also end up spending all your hard-earned savings if your insurance doesn’t cover it.
Many millennials tend to ignore the warnings of a turbulent lifestyle. Truth be told, a reckless lifestyle in youth will have its consequences in the future. By staying healthy, you’ll be strong enough to do those things you planned.
Not many millennials have access to a retirement plan
A recent study revealed that many millennials don’t work for employers who provide retirement benefits. This makes it a big problem for them to save for the future. About 62% of millennials can contribute to their retirement savings, as opposed to 74% of generation X.
As mentioned previously, the retirement future of many millennials will greatly depend on how much they can save by themselves. Saving for the future is priority, but too few young people have the capacity to do so. One quick win is to pay for things in advance to secure current prices – for example, the cost of funerals is rising quickly. The sooner you arrange a prepaid funeral plan, the more you’ll save for yourself and your loved ones.
The best time to start preparing for early retirement is now. The moment you start earning is the time to pave the path for a safe landing.