Your retirement will be (largely) your responsibility.
Some may say that is unfair.
Some may say that they have been cheated.
BUT, you can’t say nobody told you! (since I just did)
Let’s better understand the situation so we can prepare for it.
Defined benefit pension plans were a once-popular retirement package provided by employers. They gave a predetermined, guaranteed income to their former employees in retirement.
Nowadays, this type of retirement plan is rare in the private (non-government) sector. Many companies have opted for defined contribution plans, which include 401ks. These plans shift the responsibility to employees to prepare themselves for retirement.
Additionally, the long term future of social security entitlements are (at best) uncertain.
This means that our generation may need to prepare ourselves more than any other generation for retirement.
Despite this, here is why I am incredibly optimistic!
Starting early, and remaining consistent to retirement investing, are two key ingredients for success.
For those with a later start, don’t throw in the towel! Everyone wishes they had started investing 20 year sooner (including me, rather than being a dumb 4-year-old playing with blocks, I should have been investing!!)
Don’t let yourself become frustrated or hope that a miracle will come to save you in your old age.
Many of us would choose to be self-sufficient rather than rely on our future children or grandchildren to take care of us financially.
Now you know. It’s all on you.
Learn and prepare today to ensure a wonderful tomorrow!
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