Retire with ease

Starting a Retirement Fund If you earn money, you pay Social Security taxes, but the funds used to pay Social Security benefits are expected to become depleted in 2034, according to the Social Security Administration. Thus, it is unclear how well its benefits will cover the actual cost of living. Simply consider the debate today over chained CPI, a newer way of measuring inflation, and what that could mean to the value of future benefits. It is also important to note that the government (and many businesses) offers incentives to save. Putting aside money into an appropriate qualified retirement plan, such as an individual retirement account (IRA) or a 401(k), lowers a tax bill in the year that the money was saved and can accumulate tax-free for decades. Similarly, many companies will also contribute funds if an employee contributes to a retirement account. An employer’s contribution amounts to free money, and most financial advisors would encourage their clients to maximize this opportunity

Benefits

• compounding effect - Ideally, retirement planning should begin as soon as a person starts earning. In this way, you can set aside affordable amounts for a longer period and gain from the compounding benefit.
• In time there could be many reasons and situations that may require you to spend a large amount of money.
• Safeguard property and assets – Without a plan for retirement, people may be compelled to liquidate their assets to support their lifestyle during retirement or sometimes families have to rely on income from the sale of the property to deal with emergencies.
• Deal with transitions smoothly – There are many changes in life that may need immediate execution within constricted timeframes. It could be a career change, a change in job location or relocating cities.
• Access to a worldwide group
• Choose a retirement plan that works for you – Here, people like Sonam, may ask, “What do we get by investing in retirement plans? Why not live one day at a time?"

Challenges

What are the obstacles you facing when planning for retirement? Inflation, sequence of returns, unfilled income gaps, market risk, interest rate risks, taxes, long term care expenses, rising health care costs, technology and medical advancements are all real concerns that you need to think about. These are without a doubt the biggest retirement challenges.