Gone are the days when consumers expected to retire at age 65! Many are working far past this age to make ends meet. Many are forced to retire due to health issues or layoffs at work. They are all struggling to live and have enough money even to put food on the table. If you are 55 to 70 and reading this post, it is probably too late to benefit from the concepts expressed further in this post. You will need to keep working and learn to live on what you can earn and what you have managed to save. Younger consumers still have time to reach financial Retirement or Independence and decide when or if they retire.
Retirement or Independence
Fundamentally, consumers should aim for financial independence by the age 45 or 50. This means they have sufficient funds to live comfortably for the rest of their lives. It does not mean they need to retire or will retire.
They might be pleased doing the jobs they are doing. They may decide to pursue their dreams, whatever that might be. The point is that they can make these decisions and not worry about saving enough money when they stop working. How do they do that?
Start saving and investing as soon as you begin working. Invest at least 10% of your income, manage it, and reinvest the dividend and interest income. Let it grow, and if you do an excellent job at saving and managing, you will reach financial independence by the time you are 45 or 50.
By all means, keep working if that is what you need to do. The important thing is you can decide on your next career or lifestyle without worrying about earning money.