Have you started to plan for retirement? You may have begun to plan, but there are factors that can
throw a wrench into your retirement planning, derailing it…or let’s say, delaying it. When you retire
depends on several factors, mainly the life decisions you make during your job.
The following life decisions can have a significant effect on when you can retire from your job:
- You Have Children at or Near Middle Age
Having children is one of the major factors that affects retirement planning, especially for people with
lower incomes. If you have another child at or near the middle age, you may find yourself working for
another 20 to 25 years. If you have created a retirement fund, you will have to add less to it each month
than you previously did when you did not have a child. For people who marry in their 20s, they can send
their child to college and then focus on retirement planning near their middle age.
- The Number of Children You Have
The cost of raising children in this world is expensive. If you have several children, the living expenses
will naturally be higher than parents with a small family. Parents who decide to have several kids may
find themselves paying for them still at or near middle age, thus delaying their retirement planning.
- You Begin to Save Money for Retirement Late
If you begin to save money for retirement at a later stage in life, you will have less savings, meaning
retirement will not come early for you or at the same time as it does for most of your colleagues. It is
important that you start to save money early, like right out of college, if you can. In doing so, you can
save a good chunk of money to retire on time or early from your job.
- You Have Not Done Your Masters
Today, a bachelor’s degree is equivalent to a master’s degree. People with a bachelor’s degree may be
minimum wage earners for the rest of their lives. If you only have a high school diploma, you may fare
far worse. In short, this may or may not affect your retirement planning.
- You Lack Financial Education
Most people lack financial education, and this leads them to not save up money for retirement. If you
think you are in the same boat as others who lack financial education, you should consider engaging the
services of an investment advisor or financial planner to help you manage your money and save for
- You Spend More Money than You Earn
If you have poor spending habits, spending more money than you earn, it will affect your retirement
planning in a big way, as you will not be able to save money for retirement. Do not spend money on
things you do not need, such as boats, vacation homes, too many clothes, electronics, and more, but
control your spending habits by creating a budget.
Your goal should be to put money aside for retirement each month and schedule an appointment with a
professional who can assist you with retirement planning.