The Readiness For Retirement

“You can be young without money, but you can’t be old without it” -Tennessee William When I was younger and growing up I vaguely remember my parents talk about retirement. I know my dad had a retirement account that turned into a 401K in the early 90’s. My dad has been a long distance truck driver for the last 45 years and he will be retiring in the next few months. My mom was a stay at home mom. I asked my dad how he felt and what he thought about his soon to be retirement.

He explained that he is extremely excited that he will no longer be driving across country and doing physical labor. He says he is excited to relax and just catch up on movies and shows,possible plan some out of the country traveling in the next few years.The most common leisure activity older adults participate in after retirement is watching television, readings books, and visiting family.

I think that will be extremely relaxing and enjoyable for my dad considering he has driven across the country countless times and up and down the east coast in his driving career.

Retirement is to “withdraw from one’s position or occupation or from active working life.” What I do know about retirement is that when you do have a Retirement plan it is a way to insure that you will have enough income to live comfortably when you retire. I think that careful planning is the key to successful retirement.

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I have been working since I was 15 years old and I have been paying into Social Security since then. I also know that when it is my time to retire that I am not depending on that to be there. People who contribute to Social Security are mandated to put money into the Social Security Reserve.That money is being used for the older generations that will file for these benefits. Knowing that about retirement and Social Security , I started my first 401K when I was 24 and opened a second account when I turned 26. In addition to company matched 401K plan that we have been contributing into that account as well. When I got married, My Husband and I both started a Roth IRA which I think is one of the best ways to plan for retirement. You will invest and make money from your own money. A Roth IRA is a special retirement account that you fund with post-tax income (you can’t deduct your contributions on your income taxes).

Once you have done this, all future withdrawals that follow Roth IRA regulations are tax free. Roth IRA’s give people who are planning for retirement a different way to save on taxes. A Roth Ira can be withdrawn tax-free, as long as the account has been open at least five years and you are age fifty-nine and a half when you begin withdrawing the proceeds. You can contribute to a Roth IRA even if you have an employer-sponsored retirement plan. You can make contributions to a Roth IRA at any age as long as you are earning income. However, your contributions can’t exceed your income. Someone who contributes even a little as a teenager can end up with quite a bit of money later on. Empirical studies demonstrate that individuals who make retirement plans exhibit better retirement adjustment and post-retirement well-being. Specifically, the findings of both cross-sectional and longitudinal studies indicate that more pre-retirement planning activities are associated with better physical and psychological health.

Preparing for retirement and having a pre-retirement plan is an important part of adulthood. The best tools for retirement planning is just having a plan. It’s hard to plan for retirement if you are currently over extended on your current monthly bills and debts. Also the fear of the unknown doesn’t help. How do you know how much money you need? How long are you going to live? What kind of lifestyle do you want in retirement? These are all questions that the average person cannot answer. Schedule a sit down meeting with a professional to learn and create a plan now. At some point i think we will consolidate all of our accounts at one single brokerage which will help with any withdrawals and transactions. Regardless of income, within reason, it is very possible to live a comfortable life while being able to save for the future.

Works Cited

1. Arnett, J. J., & Jensen, L. A. (2018). Human development: A cultural approach. NY, NY:Pearson.
2. Wang M. (2007). Profiling retirees in the retirement transition and adjustment process: examining the longitudinal change patterns of retirees’ psychological well-being.
3. J. Appl. Psychol. 92 455–474. 10.1037/0021-9010.92.2.455