Everyone will have to retire at some point in their life but will you be financially ready when the time comes? For a significant portion of the population the short answer is “no”. If you have money set aside for retirement then you are doing great but this message is intended for those who don’t have anything prepared.
Relying on Social Security
Individuals who figure the government will be there to bail them out when they reach retirement age but that is dangerous thinking. The government is currently unable to meet its current financial obligations and with the Baby Boomer generation now retiring the cost of these entitlements are going to skyrocket. If the government is offering social security by the time you reach retirement age the amount being offered will barely cover your basic living expenses if it even covers those!
Since you cannot rely on the government to take care of you in your golden years it would be smart to start taking proactive measures right now.
Get Out of Debt!
Sure we all want to get out of debt but we procrastinate thinking we have time. The reality is you don’t have time! The longer you remain in debt the less money you will have available to save for retirement. Prioritize your debts by paying off those with the highest interest rate first and work your way down. Each time you pay off a debt you can have a small celebration knowing you are one step closer to becoming financially independent. Once you are out of debt you can begin setting aside funds for your retirement but until then you need to start paying off your current debts and not assume any new ones. If you can follow that advice you should be able to retire with some degree of economic security but you need to take action now.