Your 40 years old. You have worked for the same company for the past 20 years. There is an expectation to retire with a full pension around 55 or 60 years of age. Is this a good assumption to makee? Can you depend on your company to do the right thing when the economy gets difficult? The sad reality is that layoffs, down sizing, right sizing or what ever you want to call it are a reality for many consumers. Don’t count on a pension to stay afloat in retirement.
When it happens at age 40 or older it can be difficult to recover the same wage level and also prepare for retirement when you have to use some of your savings to get by while you look for a job.This is the reality for many Americans and the answer is that you have to assume that it will happen and plan for it and not count on a pension to stay afloat in retirement. If you are one of the fortunate few that do not get laid off or otherwise lose your job, then the plans you put in place are a huge bonus towards your retirement and will allow you to do far more than you ever planned in retirement.
Don’t count on a pension to stay afloat in retirement
This is a conservative assumption to make for many consumers who have good jobs now, however if you are one of the lucky ones and do get a pension when you retire, then you will be better off anyway since you will have both your pension and savings to rely on and enjoy during retirement years.
If you have not started saving now, start immediately. With the interest and dividends reinvested your retirement savings can add up quickly making you more comfortable as you approach retirement years. Even just knowing that you have the savings you need will give you the confidence to retire early and enjoy life, start a new career or what ever turns your crank and not worry about having to count on a pension to stay afloat in retirement.
Count on a pension to stay afloat in retirement
Here are five rules that will help you on your way to prepare for retirement with or without a pension:
- Pay off credit card balances each month
- Retire off your mortgage before you retire
- Pay off other debt before you retire
- Never miss a payment on a loan, utility payment or any other kind of payment
- Put away at least 10% a year towards retirement
- Live within your income level and do all of the above
If you can follow these rules throughout your life, you will be in excellent shape regardless of whether you receive a pension or not. The best part, you don’t need to count on a pension to stay afloat in retirement, you have independence from your job and you have the freedom to live your live in the manner you wish even if you do get laid off.