Retirement

Retirement. A noun. Longman Directory states: "when you stop working, usually because of your age".

But many are not sufficiently prepared financially and emotionally for retirement even though they may have reached the retirement age...usually considered to be 55 years old. Today for some (who may be in the beginning of 50) it may not be an option but forced upon them either due to ill health or the loss of employment from retrenchment. Some companies are also using this economic downturn as an excuse to "kick out" their older staff..by "offering a beneficial retirement package"...which is targetted at those who are 50 years and older. However, if you look at the retirement package that is offered it is similar to those for retrenchment!!

Retirement. Why are many not prepared?.... Poor financial planning or more likely the lack of financial planning in the second life phase..i.e. the working phase, is the principal cause. Many have borrowed large amount of loans to finance their purchases of big ticket items like an apartment and a car or two (one for the wifey)...considered as a necessity, they say. Whatever remains from the wage income is put into small pools of funds for different purposes, the crucial being: children's education up to tertiary, annual or semi-annual overseas holidays to "destress" from hectic worklife. But a fund for retirement? Only if there were any money left.....into a savings account...."for a rainy day". But most will use the savings for punting in the stock market rather than making strategic investment plans which expose them to risks. Some do not even have life insurance or critical illness insurance to cover themselves.

Could it be an attitude problem rather than poor financial planning for retirement?
I think it is. Common attitude is why bother. Many has this archaic mentality that their children will look after them in old age since they had "invested" heavily on the children and thus the children are "obligated" as filial piety goes to take care of their parents in old age. No matter how much you have spent on your children to give them a good station in life that is your principal responsiblity as a parent. One should not look towards the children as a source of income for retirement but should be prepared financially to be independent and continue to enjoy a good life. Otherwise I think it is miserable.