I mean, retirement when you reach the required retirement age and be able to withdraw money from your investments.
I remember, a few months after we got married, my husband was very confident in saying, he can quit the Wall Street pressure and very comfortably retire when he’s 50. He figured, our investments plus his 401k, IRA and SSS pension will be enough, and being that at age 50 you can’t withdraw from your 401k and can’t collect from SSS, the other investments we’re vested on will be enough to get us through till he turns 62.
Guess what? This turned out to be just a dream after all. No matter how diverse our investments are, it will simply be not feasible, and I can tell you why.
1. Investments took a beating after 9/11 and although the market recovered, you can never recover the earnings these investments you would have had/earned those years the market was bad.
2. The SSS retirement age, for you to be able to collect used to be 62. It’s now 67. Therefore, you either stop working or continue, so you’ll be able to collect a bigger amount of money when you retire. But who would want to be working still at age 67?
3. The stock market is currently so unstable. You can not even plan around it anymore.
Many people take retirement for granted and not even think about planning for it. Being that we are young, and still have a lot of years till retirement should not make us be complacent and just squander and enjoy the money we’re currently earning. Having a roof over your head that you already own and SSS pension is not enough.
Scary isn’t it?