Retirement Retirement is one of the most important crossroads we face in life. It involves a fundamental change in lifestyle, one that calls for a totally new outlook on how we approach each day. All our lives we have been conditioned to think in terms of saving for our retirement years. Society has created this mystique about this time in our lives when we magically transform into different people with different lives when really we are the same people with different day to day lives. According to Medina, (2012) planning for retirement isn’t a "walk in the park" because for many people, debts are high while income is low. Many OFW’s after working many years abroad was not prepared for their retirement. Many OFWs leave the comfort of staying in the Philippines and their loved ones behind in search for greener pasture. However, not all Filipinos who go abroad have a clear set plan for their retirement. According to Marquez, (2015) Life as an OFW is not forever. Soon enough, you will lose your strength, perfect vision and hearing. A retirement plan gives you more sense of security knowing that you’ll be okay financially if this time comes. According to Barrios, (2015) Retirement Fund is “real savings” which is meant for long term investment ` …show more content…
The insufficient of retirement plan is the reason why many OFWs go home and still find on the same financial situation. The reasons that the OFW should start prepare for their retirement is that they don’t want to burden their kids with their financial obligation, they would want to spend as much time as they can with their loved ones, and their life as an OFW is limited. A retirement plan gives more sense of security knowing that you’ll be okay financially if this time
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
Through the years, people age and become less productive. For these reasons, they have to prepare some plans that help them secure their own future. But, there are instances that lead an individual to an early retirement. Some lack motivation and enthusiasm in their work. Others are not capable of working anymore as well because of the health issues that they are facing. Regardless of the reason, it is important that one has to work so that by the time they retire, they will not end up broke. Having this in mind, many people are already investing in a simple IRA.
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The Australian government will increase the age pension from 65 to 70 by 2035(Australian Department of Human services [AU]). This announcement has lots of challenges for Australian people who are under 50; some people support the rise and find it beneficial for the future economical life. However, others are against the announcement as it has lots of concerns for their future plan, as they have to work longer to save more for their retirement. The current population ageing put pressure on the young workers who support retirees and their families, at the same time it affect the economic development. So the rise of pension has advantages and disadvantages on the future life standard of most Australians. It is beneficial decision from the government to provide a productive and qualified future life.
According UN’s The World Population Prospectus: 2015 Revision, the world’s ageing population is growing rapidly in contrast to the shrinking working age individuals. As a result, it is likely that the global economy shrinks as jobs are not substantially filled. Indeed, east Asian countries experience this demographic change at large. However, as markets are highly dependent, this change may sway the focus of global commerce. Generally, it is suggested that the market for retirement lifestyle is growing. Indeed, there have already been fueling demands for public investment to meet the needs of seniors and children in Japan. Hence, this hints at a potential shift in global market focus. However, the problem is not as much an issue in the U.S.
In the Philippines, the ages to be considered a senior citizen are those who are aged 60 years old and over. The senior citizens made up 6.8 percent of the 92.1 million household populations in 2010, higher than the 6.0 percent recorded in 2000 and the number reached over six million in 2011 and it is seen to double in 16 years. The number of people 60 years old and above, or those considered as senior citizens, has increased, as the country's household population increases. With the growing number of senior citizens, there is a generalized notion associated with senior citizens such as degeneration and decline of health and well being but on the contrary, most of them are still active and productive, performing significant roles at home and
Various researches can determine possible reasons as to why consumers have quite a lot of trouble making financial decisions that can be the most beneficial later in life. In the context of savings for retirement, conclusions from a test reveal that self-regulatory state, possible future orientation and more and better financial knowledge can and most likely will influence a consumers intentions for retirement investments, for example, setting up a 401K in the USA. Other studies suggest consumers who show higher amounts of future orientation are usually more likely to start up a retirement plan. Studies also show that financial knowledge and financial orientation toward ones future can help to influence the chances of one participating in a 401K plan.
Not to mention other financial decisions. Strategies to maintain purchasing power due to the effects of inflation, preparing for incapacity and minimizing taxes are all important in the post-retirement planning process. Make sure that your parents receive adequate advice from a qualified financial advisor, estate planning / elder care attorney and CPA. Ideally, your parent's advisor should be able to provide them with the appropriate references for their situation. There are a numerous of re-sources
The aging of the U.S. population is affecting the demographics of the work force. Between 2000 and 2010, the age group experiencing the greatest growth will be those aged 55-64; by 2005, people aged 55 and over are projected to be nearly 20% of the working age population, compared to 12.5% in 1990 (Barber, Crouch, and Merker 1992; Barth, McNaught, and Rizzi 1993). For a number of reasons, including financial need, longer life expectancy, and a desire to continue working, the number of individuals aged 55 and over in the work force is continuing to grow (Hall and Mirvis 1994). It is no longer unusual for individuals to retire from one job, begin drawing a pension, and seek new employment: since 1984, both the full- and part-time work of "retired" men younger than age 65 has increased noticeably (Herz 1995).
Transition is important aspect to successful retirement. Planning is also essential task that must be done before retirement. Retirement impacts everyone differently depending on the individual social status. Robert Atchley developed a model to identify the process of retirement in five stages which are the honeymoon phase, disenchantment, reorientation, stability, and termination (Martin, 2014). The honeymoon phase- is the acceptance phase where the individual comes to terms with retire rather the individual like or dislike their new lifestyle (Martin, 2014). Acceptance is key to self-growth it shows signs of maturity. Disenchantment- expectation versus reality phase the individual likely to experience disappointment (Martin,2014). Reorientation is a phase of reality where the individual finds a
Personal financial planning eventually leads to secured retirement years; this is the purpose to plan for the future. With a volatile and erratic economy, and social security benefits undetermined in regards to having enough money to comfortably survive after retirement is critical. There is no magic ball to tell us what the coming years will bring; this is why it is up to each individual to have their own financial lives under control. Having a concrete financial plan now will secure an increased comfortable future.
After retirement, mostly people live alone with their partners, live as senior of the family or as the grandparents. Some of them move to the retirement villages in order to fulfill their daily basic requirements in the limited resources. According to the law, employers have to make contribution towards the retirement of the employees and this is done by contributing almost 9.5% of the employee’s salary into the superannuation fund [1]. This law is applicable for every employee whose age is 18 to 70 and is working for more than 30 hours per week. Individuals can also fund for their superannuation in order to secure their retired life. Superannuation fund can only be withdrawn after the age of 55 and for this there is a strict legislation. It can be withdrawn as lump sum or in the form of the pension [2]. According to the research, mostly men live 18.5 years after their retirements and mostly women live over 23 years after retirement whereas their superannuation funds last for almost 10 years of their retirement age [3]. That is why, now authorities are trying to increase the age of retirement so that people get to work a bit longer as organizations give preference to the young employees and do not want to hire the old minds.
Allers, Kimberly Seals. "How Fit Are Your Finances?" Ebony 68.9 (2013): 93-97. Academic Search Complete. Web. 15 Nov. 2013. Bauer, Gabrielle, and John Southerst. "A promising retirement: your life, your way." Maclean's 18 Feb. 2013: 37+. Opposing Viewpoints in Context. Web. 15 Nov. 2013.
For Romerico Sollano, an OFW working as a seaman, 85% of the crew on the ship he works on are Filipinos. This allows him to keep a bit of the Philippines with him to pursue through the homesickness (Sollano). Another OFW, Francis Almira, is an auditor in Angola, the
The importance of saving for retirement is all based on how the individual wants their lifestyle to be after their career. The sooner they begin saving and investing their money, the more profound lifestyle they are bound to live. There is a saving plan called the 401(k) that lets employees have a percentage of their net pay withdrawn before taxes. This helps significantly if they are planning to retire earlier on in their lifetime because it can also lower the amount of taxes owed each take which essentially is more money in your pocket every paycheck. America as a whole downplays the significance of saving for retirement until they get of a certain age and they are too drained to get up for work and work a full shift as they would when they were of a younger age. Typically, when living in retirement you are free to travel and reach goals you were not able to achieve because life and work got in the way. Enjoying your retirement is the goal, not to make your retirement a burden to you or their