Our retirement system is broken.
The concept of retirement is new. Up until the industrial revolution you worked until you died. Pensions did not exist. You saved, families supported multiple generations and you were ultimately responsible for yourself.
“Retirement” is in its childhood, when you look at how long the world has been around versus how long we have had retirement we must remember that our system is still just a toddler.
You would not expect your child after five years to be done growing and developing. You expect them to change, grow and adapt as they learn about what works and what does not work. In fact as humans we never stop learning and changing.
Our “retirement” system should also not be expected to never grow, change and adapt. It should not be expected to be perfect all the time. As we learn what does and doesn’t work with retirement we need to adapt and change. Likewise as the world changes and society changes our systems will also have to continually adjust to the changing environment.
Yet while our retirement system is still figuring out what works you still need to find the right solution for providing yourself with the funds to take care of yourself and your family.
So how do you account for the changing systems and still make plans for 20, 30, and 40 years from now?
The first thing you need to do is revert your thinking to the “pre-retirement” era style of being responsible for your own retirement. You are responsible for you. Don’t rely on a pension or government as they are changing and you don’t know what they are changing to. Eliminate thinking that others will take care of you and that you have time to figure something out. Begin today to focus on you creating your own solution to saving for retirement.
The key to having enough money is to save early and often on your own. You don’t know what Social Security is going to look like in 10 years, you don’t know if your company that has your pension is going to be bankrupt, and you don’t know if you will be healthy enough to work until you die. The only thing you do know is that YOU will be in your future. So the sooner you start saving for retirement the better.
No more excuses, no more after the next big event – if your retirement is going to be enjoyable and secure you need to take steps TODAY to make that happen.
Ultimately remember you choose. Don’t get trapped into victim thinking – you decide, you control your future even if the retirement system is broken.
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