Wednesday, December 23, 2009

Why people don't plan for retirement?

I have seen that many people around me do not have a retirement plan yet. They are simply too busy in doing their own thing and don't bother to think about it.

These people can be classified into two basic types:

1) Work and Pay
This type of people normally works very hard for their careers and they have a lot of financial commitment, like paying huge monthly installment for owning car and expensive property. It is very hard for them to save up money. And even there is any savings, they will just spend it on travel or other thing. Their common reason of not planning for retirement is they simply have no money or time to do so.

2) Work and Play
This type of people normally will spend a lot of time on playing games, watching TV or other entertainment after their work. They will not care too much what will happen next in their life. Their common reason of not planning for retirement is they thought that their savings and CPF are enough for their retirement in the future. I am guilty to be one of these people in the past. I used to play online games like MapleSea and DOTA for at least 20 hours a week.

It is only when my child is born three years ago then I realised that I have to be financially more responsible. Since then I have quitted my gaming habit and have started to have my own financial/retire planning. I am a super saver, so it is not difficult for me to start one.

So are you belong to any of the above two types? And have you started planning for retirement yet?

2 comments:

Wallace said...

How to plan for retirement?
What is the real inflation rate?

Freedom Achiever said...

Hi Wallance,

It is hard to determine the real inflation rate as it can be different every years. I would use 5% as a estimate.

Regards,
Freedom Achiever

Have you started your journey towards financial freedom?