Why You Need to Plan Your Future Financial Stability

Have you started thinking about your retirement future yet?

This might seem far and too extreme to think about but starting as early as possible even with something small is so important.

Why? Because thanks to advances in medicine, living conditions and technology, we live so much longer than previous generations. And pension schemes were not built to cover your expenses for this long. Also, not every employer has a pension plan that you get support with.

In fact, the World Economic Forum has found that most of us will be left with 8-20 years without any savings. This means that if you don't do anything now, you'll need your kids to support you in your retirement years (if that is even an option for you) and if not, it's scary to say but you may end up on the street.

Granted, governments and employers have a lot of work to do here but you should be thinking about this as well.

What You Should Do Now to Secure Your Retirement

I always recommend a long-term investment strategy where you buy and hold shares or focus on rental property until you retire to give you a good additional buffer.

Retirement is supposed to be about enjoying life without worrying after so many years of working. But how are you to do that when you don't have any money?

Additionally, if you start investing early (whether in the stock market or in properties) it might allow you to retire earlier and live off your investments before your official retirement age.

There's a rough formula that helps you calculate how much savings and investments you need in order to retire early.

Take your yearly expenses (which is your monthly expenses multiplied by 12) and multiply them by 25. This is roughly the amount of money you need to retire comfortably without having to work again.

Regardless of whether your goal is to retire early or simply to enjoy your years of no longer working, go check your government and employer plans and schemes, think about your retirement options and consider what you could do on your own.

How are you preparing for your retirement?