Simple Reasons Why Late Retirement Planning Can Still Help You Retire Comfortably

By Mary Grace

Can late retirement planning help you retire rich, happy and comfortable? A reader asked the effects and disadvantages of a very delayed retirement planning.

We all know that when retirement planning was done so early, we will retire early. However, due to different priorities in life, planning for retirement was ignored.

Lucky are those people who are not procrastinating. Those people who save money for retirement and those people who are taking retirement plannings seriously.

“What if I started to plan for my retirement so late? Do I still have the chance to retire comfortable? I know late retirement planning has big effects and more disadvantages. I want to know how can I retire comfortable even though I just started retirement planning very late.”

Can Late Retirement Planning Help You Retire Comfortably?

Late retirement planning can still help you financially. However, there are adjustments on your part. Imagine if you save money at age 25 and you just started at age 45 and want to retire at 55, that means you only have 10 years to prepare compare to a 25 year old that has 30 years preparation.

Late retirement planning is not recommended. Why? as I have said awhile ago, due to many priorities in life, some important things are ignored.

Late Retirement Planning is Just Like Watching the Train Passing By

Image Credit: Brendan Ross on Creative Commons 2.0 via Flickr

When you’re at 40, you have kids to prepare for their education, you must have your own house and must have enough money to sustain your family’s daily needs.

What have you noticed about the picture in this post? Imagine if you are travelling and you came very late and the train just go by. Will you feel sad? Of course, not only feel sad, you will also feel disappointed. Should you blame someone? No, you shouldn’t blame anyone. It is your fault.

In retirement planning, it’s up to you when you want to arrive in your destination. You can arrive too early or too late. Of course, those who retire young and rich are happy because they have more times or more years to enjoy the rest of their life. If your plan is to retire at 55 but you are aggressively save money to get the target amount you need, you can retire earlier than 55. Imagine if you live longer, let’s say 85. That means half of your life is enjoyment.

Late Retirement Planning Can Still Help You Retire Comfortably

That was true. You just need to save enough money for few years. All you need to do today is to know how much money you need to retire. Say for example, if you are now 45 years old (so late), and want to retire at age 55, how much money should you save?

First, know the total amount of money you need when you retire to consider yourself as “rich and comfortable”. To know the exact amount of money you need to retire, know your annual income and have a total assets that earn equivalent or more than the amount you earn in your annual income.

Example:

  • Annual Income: $50,000
  • Target Amount for Retirement: $700,000
  • Invest in a Vehicle that Earns 8% Per Year

You need to know how to make the money work for you so that you will retire comfortable. The idea is to have a passive income. That’s the reasons why we are saving money for retirement. That’s the reasons why the government and private investment firms wants us to have a individual retirement accounts.

Fill those investment baskets, you retirement nest eggs, and during your retirement, those money will work for you without any effort on your part. So, whether you are planning for retirement too early or too late, the important thing is to get or acquired the exact amount of money to consider yourself as rich and comfortable. To save money (enough money) to work for us during our retirement.

Retirement Quote of the Day

People may live as much retired from the world as they like, but sooner or later they find themselves debtor or creditor to some one. – – Johann Wolfgang Von Goethe

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