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A number of people venture into different fields of work because they desire extra engagement. Reconciliation is the final stage. Ages of individuals at this stage range from the late 70s to early 80s (Schieber, 2012). The imagination stage is core because it dictates the stability of life after retirement in light of finances.
In the midst of contemplating retirement, it is important to consider the amount of service credit earned for the total fiscal years of service. Age is another factor of consideration. From the age of 50 to 63 years, for every quarterly of a year there is an increase in retirement benefit (PLANNING YOUR RETIREMENT: Your Retirement Checklist). After the age of 63, the benefit remains constant. The average salary earned is the third factor to consider before retirement. The highest twelve months of salary earning determine the latter factor.
Well-being of an individual, that is, health condition greatly influences retirement. An individual ailing from a life threatening illness is unlikely to encounter the five stages of retirement. Retrenchment is another factor that influences retirement in that there is an interruption to a person’s retirement planning. The role one plays in the structure of an organization is a factor that affects retirement in light of benefits earned from service. As mentioned above the average salary of an individual dictates the retirement benefit.
The government funding of an employee’s retirement plan guarantees one a particular benefit every month while on retirement. The plan is a defined benefit plan (What You Should Know About Your Retirement Plan). Benefit computation at retirement considers average salary, duration of service to the organization and age. The current level of the planning process is working on full time and on the imagination stage of retirement.
In planning retirement, it is
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Time is a variable that works in favor of young people if they start their retirement planning early in life. Compound interest works favorably when people accumulate wealth over time. I expect to graduate with a bachelor’s degree in business administration with concentration in finance in December of 2012.
Unfortunately the social security system in the U.S. is bankrupt. Young people today are going to receive a much smaller social security pension than the retirees of today. It is very important for people to plan for their retirement. There are a variety of investment instruments that can be used by people to accumulate wealth over their lifetime.
A baby boom is normally considered as a sign of economic stability and growth. It normally occurs after an uplifting event like a war. Baby boom is normally referenced as a period after the Second World War. Consequently, nations that participated in the Second World War experience a baby boom at different times.
Depending on the objective of the individual, an appropriate personal retirement plan can help the individual to balance current and future consumption by determining amount of current investible funds that is available and vesting them in retirement accounts (Purdue University, 2009, p.18).
People, therefore, should not be forced to retire since it is clear that people no longer comfortably enjoy their social security. Generally, people do work to cope with the ever rising cost of living come. The cost of living has increased at an incredible rate, but the wage rates have not increased accordingly.
A pension is amount of money in which one pays or is deducted in order for them to have an income after reaching the age of retirement where they do not have to work. There various ways of calculating the
One of the most agonizing conversations that retirement planners confess they have with their customers is the one where such planners tell customers that they do not qualify or are not yet ready to retire because their savings are
The employers however use the money as an insurance to control the employees and prevent them from leaving the company earlier. This plan is available for those in private sector. The negative side of this plan is the yield disparity
That is, instead of my retirement benefits being subjected to a formula which takes into consideration how long I was on my job and my average income during my last years of employment, this plan will credit my account with certain set percentage
As such, as I plan for my living expenses during retirement, I will need to save enough money for twenty years, without work while maintaining the standard of living I had grew accustomed. Since I started work early, I will start to save when I am twenty
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