When a friend of mine who still works as a civil servant, a friend I feel all the necessities of life are met. The facilities provided are very comprehensive and provide exceptional comfort. Of health insurance (though just ASKES) family to life, the certainty of a fixed job, until retirement. It was not needed anything else, the important focus only on the job.
But, my friend began to feel things that are unnatural, because it often meets with employees who have retired. Many of the things they tell, including the lack of pension funds they receive. At that time my friend thought was reasonable, because all the people that were not always enough and never feeling satisfied with what they have. When one day, one employee died young, begin to open the eyes of my friend. His wife only received a small pension from the State, certainly not enough to feed herself and her two children are still in school. It was not until I began to count, how many actual pension will I receive? Is it enough to meet the needs of families?
Not satisfied with the number that appears, I became awakened friend. During this time, we are satisfied with the condition of the office / place of our work will provide a pension fund until we die. However, just whether or not to live later, no one ever discussed it. Until finally, the retirees are aware that they can not do anything else, just begging to raise their pensions. Very unpleasant, is not it? Meanwhile, in retirement we want to live comfortably, enjoying the hard work so far.
My friend then started counting. If retired, my lifestyle would like what? How much actual money that I can retire from office? What kind of facilities which I still receive after retirement and whether it is sufficient to meet future needs? Increasingly ask, the more the number that appears and the more frightening to see the amount of money I have saved from now to cover the shortfall. My friend realized that the fund and retirement facilities are not sufficient to meet the needs of old age. Saving money just was not enough.
Never rely on the Pension Fund which is available from the office where you work. That amount would not be tailored to your individual needs. When you compile the Pension Fund, you must take into account the lifestyle you want and inflation you have to face.
Here are some things you can consider in planning for retirement:
Examine Cost of Living In Your Retirement
The amount of expenses in retirement will depend on the lifestyle you expect. At least you would want adequate financial conditions to pay the basic needs of daily life is not it? You also need to consider in retirement you will not get salary payments again. While on the other hand, the cost to your health care will increase. All of this funding are quite expensive, so plan for retirement for 20-25 years is feasible.
Price Increase in Retirement
Prices of goods and services tend to be higher because of inflation. Maybe you do not realize this now because they still get a paycheck every month. And salary increases each month may still be offset rising inflation. At the time of retirement, if you do not have a side business, then the savings you have should be able to keep pace with inflation.
Determine the amount of funds that must be saved
After researching the cost of living and inflation on your retirement, your next step is to calculate how much money you’ll need at retirement. A good reference for an estimate of how much you should prepare is about 70% to 80% of the income that you would get before retirement.
Investing for Retirement
There is never a two investors are exactly alike. Different objectives require different strategies to achieve them. Over time you need to adjust and monitor the progress of your funds according to age and changes in investment objectives.
In financial planning, you should include insurance as protection for the value of your Economies, Health, Critical Illness and of course with him makes you comfortable. You when the less fortunate, having an accident then the insurance that will work for you.
Happy retirement plan
The terms “pension or retirement” includes retirement, pension, retirement, health benefits, maternity and occupational risks, invalidity pensions, old age and death and any other kind of assignment of permanent and regular, which collects under of social welfare laws, the allocation or subsidy paid by the employer contracts to cover concepts or similar risks or salary, with the same character, confer the companies or entities to its retired personnel and the term “annuity or annuity “means a stated sum of money paid periodically during the life of the beneficiary or during a specified time, either free or in return for a payment made or cash value.
- The term “capital gains” refers to the profit made by a person in the disposal of assets not acquired or produced normally in the ordinary course of its activities.
- The term “competent authority” means, in the case of Argentina, the Ministry of Economic Affairs (Ministry of Finance), and in the case of the Republic of Chile, the Ministry of Finance.
Any term or expression that is defined in this Convention shall have the meaning that is used in the legislation of each Contracting State.