Looking at tomorrow

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Retirement planning needs to start years before we get there. For many people this is a task they procrastinate about.

We are so busy living for today, the thought is there that tomorrow will take care of itself.

Well, that won’t work in this day and age.

Planning needs to start as early as when we are at school. The disappointing thing is no-one is currently telling us about what will end up being one of the most important aspects of our L O N G life.

So what are those things we need to be telling young people? Typical stages are:

  1. Get a great job
  2. Work to have a fulfilling life
  3. Enjoy a long and rewarding retirement.

Often it’s just the first thing is all we focus on for so many years. Experience has shown me having a fulfilling life escapes so many, we are so busy getting a job. [nb not a great job]

What is the purpose of having a great job?

  • Earn enough to have a good life.
  • Self-fulfilment – doing something we enjoy and will do so for many years.
  • Hopefully, contributing to a great lifestyle and a longer term personal plan.

In time the result of the good job [whatever that is] will contribute to a fulfilling working life where we can accumulate the assets we will need later in life.

Experience has shown me though we are usually busy enjoying life in the NOW to think about TOMORROW. Experience has also shown me tomorrow does eventually arrive and faster than we imagine.

You have been warned!

If you are reading this and are still in stage 2, hopefully you can pat yourself on the back because you are planning for a comfortable phase 3 – what I call the “GOLDEN AGE”.

However, if you’re like many and are busy enjoying a fruitful life without a thought for tomorrow – STOP!!

It is time to take stock and seriously look at what the next 20 years plus will look like. The day is imminent when the regular wage is likely to stop and be replaced by a superannuation benefit that is probably much less than what you currently earn.

Will you financially survive the transition to that Golden Age?

So many things to consider like expenses in this new age and the changes that are about to occur with your life.

The main aim here is to have you consider your plans for that Golden Age BEFORE you arrive there.

Watch this space.

By Alex Sharp

Read more by Alex on GrownUps here.