Introduction – This article is for you if you are either:
- Over 50, and thinking about your retirement and are concerned about losing your monthly pay check; or you have not really planned or even considered how you want your retirement to look; so you have no idea whether you will have enough money to maintain your current lifestyle and do all the things you planned to do in your retirement years.
- Or you are already retired, and feeling that there should be more too it; or maybe you are already spending more than you planned and are worried that your savings and social security (pension or superannuation) entitlements will not be sufficient.
There are a multitude of factors that will determine whether you and your family will have sufficient savings and pension funds available to allow you to maintain you standard of living during your retirement years without needing to make extra money.
The factors are interrelated and complex, and many are beyond your control.
So let me ask you “where do you stand”?
OK, I have to own up – this is a bit of a tricky question for most of us; because:
Unless you are very wealthy – so having enough money is not an issue for you, or at the other end of the spectrum – y0u are already resigned to a retirement life supported by the social security system.
You must be one of the remaining 75% to 80% of us who are not wealthy but not prepared to live a retirement funded largely by social security, because that could never fulfil your dreams and aspirations for your retirement.
In which case it’s impossible to answer this question with any confidence. There are too many unknowns and uncertainties, and it is too complex be accurately modelled.
So, assuming that:
You are in that 75% -80% majority and you are probably unable to accurately predict whether your retirement funds will be sufficient or not. But you may have a nagging doubt that they won’t be.
In which case, you probably Will You Need to Make Extra Money for Your Retirement, and this is something you need to address; and the sooner the better.
How will you make extra money for your retirement?
When it comes to making extra money for retirement, the internet has changed everything.
The internet is reshaping the human life experience and providing new business opportunities to ordinary people that 15 years ago would have been the stuff of science fiction.
The new opportunities the internet has made possible that allow you to create your own business online are limitless.
However, setting up your new business and making enough money from it consistently every month will take time and effort.
So, don’t wait until it becomes obvious that your savings and pension are not going to be enough for you – by then it may be too late.
In any case, you have nothing to lose and everything to gain. If it turns out, you didn’t need the extra money-that’s fantastic! You can spend it fulfilling some of your life-long unfulfilled dreams. Like your dream holidays and places to visit, your cottage by a lake or near the beach, your own boat, spending the winter months in a warmer climate – whatever it might be for you and your partner.
Here are 5 common scenarios that might apply to you
My aim in this article is to simplify the issues and potential complexity for you. So here are 5 common scenarios that could apply to you. If any of them do resonate with you, my recommendation that you should start your own home business now would apply
Scenario 1. If you are still working in your day job or small business.
Many of you probably already have good jobs or a small business with decent pay or profits. But based on my own experience in my career, the number of hours you have to work and the stress that often comes with it can be a high price to pay.
You may already have a decent standard of living but you are not building wealth (i.e. assets that earn money for you – either a regular income or a future capital gain. Property and stocks and shares can do both).
So as you grow older, like me, you might decide it is time to move on and make a fresh start doing something new and different. So making a start in your spare time will be the least risky way to do that.
It will give you time to get your part-time business up and running, with your pay-check from your day job still coming in. So you can take your time, and if you change your mind, try something different.
If it goes well, you may even decide that you are in a position and have the confidence to quit your day job and focus on growing your new lifestyle business working from home.
Just imagine: no more commuting, no longer hours at work, no more office politics, no more boss-you are your boss now.
Scenario 2. Lack of Job Security
If you are in your 50’s, in particular if you are in an executive or managerial role, it would probably be unwise to assume you will be allowed to retire when you choose, or when you reach the retirement age your company has chosen to adopt.
These days, job security has become a thing of the past. Let’s face it companies are always looking to save money and the easiest way of all is downsizing, and there could be a bright up-and-coming younger person with ambitions on your position.
Or a corporate change might occur, such as a new CEO with a mission to improve profitability. Even worse, your company might be taken over.
I have been on both ends of that situation during my career, and I know for a fact that the general attitude of the management team that moves in from the new owners is that all the existing management team are probably not the right people for the future and they usually get replaced in the first few months
The other bad news is that if you are in management, unless you have highly specific and sought after skills or knowledge, getting a new job is going to be very difficult and on average takes a couple of years, and often doesn’t happen at all. If that happened, your new part-time business, if you have already started, could be a real life-saver.
Scenario 3.You will probably live longer than you thought.
The longevity revolution, already happening in longevity science and medicine, is redefining life expectancy, and its implications for humanity, at both the individual and collective level, are profound.
The longevity revolution is going to result in a quantum-leap in our lifespan; but equally important – how long we will stay healthy (i.e. our healthspan).
With the onset of this new age, the most significant change, assuming you retired at 60-65 and live to the projected average 100 years, is that you would have 30 or more years of potentially active and productive life to look forward to.
So the great news is that in this new era “Retiring” is not the end, it’s actually a new beginning, and what you make of that new beginning is completely in your hands. I think that’s exciting, don’t you?
This is good news; but it will mean you will need to reassess the amount of money you will need for your retirement if you potentially have 30 or more years in your third life phase (i.e. from age 60-65).
Scenario 4. To maintain your purpose in life after retirement
It is vital from the outset, that you understand that at any age, human beings need to feel relevant and useful in order to feel fulfilled and happy.
When people retire without a plan, they lose their sense of purpose, they become disconnected and depressed.
But don’t worry if that sounds like you; it is never too late to start your new life, you are never too old to learn.
You just need to take action.
So no matter how you decide to live this third phase of your life, you need to find a real Purpose for Your Retirement Life.
During your working life, your need for a purpose was fulfilled by your career, bringing up your children and your relationship with your partner.
But when you retire your job is gone, your children have probably left home to forge their own lives and families, and your relationship with your partner will need to be redefined. They are used to you being at work most of the day and probably have their own well established social life.
Scenario 5.Your Pension or 401K Entitlement may not be as secure as you think.
For the first time ever, in many developed countries, the percentage of the population over 65 is equal to or exceeding the percentage that are 14 or under, averaging around 15%. This means that less people will be contributing to social security systems that that will be supporting more people than ever in history.
This is due in part, to the increase in longevity over the past 50 years, but it has been exacerbated by the baby boomer generation, born after World War 2, between 1945 and 1964, now reaching retirement age.
This trend is set to continue, and it has been concerning governments and policy makers for some time. Keeping this growing ageing population healthy and active has become crucial if we are to avoid unsustainable growth in Government debt and unsupportable strains on health and social security systems
The simple fact is that once they get past 70, the overwhelming majority of Americans collect a Social Security check, and that Social Security check constitutes the largest single element in their retirement income
When it comes to making extra money for retirement, the internet has changed everything. You can find out more by reading my article How to Make Extra Money Online for Retirement
I hope the information in article has been helpful in providing a summary of what may lie ahead for you and many others, and the potential new opportunities that have been create by the internet revolution to help you to make extra money for your retirement.
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