As people reach their 20s, financial planning for the future becomes more important than ever. With the burden of student debt and the desire to enjoy life in the present, saving for retirement or investing in a home can often take a back seat. In a recent online forum, users discussed whether they should save money for retirement.
One songwriter and performer wishes to spend more time writing music. Right now, they get so burned out with work at the end of the week that they no longer enjoy writing in their free time.
1. Start Saving Early for Retirement
In a world where time is scarce, a savvy user sheds light on the golden rule of financial wisdom. They shared that they began saving for retirement at 18 and are now 49, earning the national average income, and will have retirement options by the time they turn 57. They claimed that saving for retirement is the best and easiest thing they have ever done and that they never missed the money because they started so young.
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2. The Paradox of Youth and Retirement Planning
One user candidly pointed out the paradox of youth – that fleeting sense of invincibility that often leads us to live in the moment until the relentless march of time reveals the truth – that a secure retirement requires diligent planning and the foresight to start saving early.
People in their 40s are no longer thinking about dying young, and the reality of old age sets in. Enjoying the rest of your life in retirement is important, and living in poverty is not a desirable option.
3. Retire with Dignity: Plan Early and Enjoy
According to the third user, it’s important to plan for retirement if one plans on living past 60 and avoiding poverty for the next 30 years. They also suggested that saving up a good pension can allow individuals to enjoy spending their money more freely in their 40s and 50s.
4. Overestimating Misery: Retirement Isn’t a Death Sentence
Challenging the conventional wisdom, a user shared a thought-provoking insight – that the human mind, prone to illusion, often overestimates the threshold of pain and misery, mistaking the temporary discomforts of life for the eternal shackles of suffering.
They gave an example of their father, who is 70 years old and has been retired for over a decade thanks to a pension pot that he built up while working. The user emphasized that hitting a certain age does not mean a person waits to die and that the reader has plenty of time to figure out their retirement plans.
5. Perception Shift: Enjoying Life and Saving
An individual emphasizes that life can change one’s perception, and experiencing more of life can lead to a better appreciation of what is truly important. They suggest enjoying life in the present but also considering the potential consequences of not saving for retirement.
Ready to Retire? Check Out the 14 Best Countries to Live Your Dream Life! – The Frugal Expat
Colombia
If you are looking for a place with a great culture and many different environments, look no further than Colombia. It is many different microclimates. You could be near the beaches or go into the mountains. The people are friendly and welcoming, low costs and healthcare is ranked in the top 20. So it is hard to pass up.
Thailand
Take a trip to Asia and retire in Thailand. Many expats flock to Thailand because of the weather, the beauty of the country, and the low cost of living. Thailand should be your destination if you are looking for mountains, beaches, and cheap food. Most retirees could live on a budget of between $1,500-$2,000 monthly. If you are frugal you could bring those prices down.
Costa Rica
Costa Rica is known for Pura Vida, which is pure life or simpler life. They have great beaches, incredible rainforests, and volcanoes all around. Healthcare is some of the best in the world and affordable for expats. It is also known as one of the safest countries in Latin America. With the low cost of living, you will love to retire in Costa Rica.
Portugal
Another great country in Europe for retirees to visit and live in would be Portugal. The low cost of living has people spending anywhere from $1,500-2,000 a month, and the majority of the country speaks English. With a low cost of living, beautiful architecture, food, and great healthcare, it is no wonder people are looking for a place in Portugal.
Malta
Malta is located just south of Sicily and offers beautiful weather and fantastic beaches on the Mediterranean. The climate is generally mild all year round and is much less expensive than most of Europe. Monthly costs could be around $2,600 a month. So retiring there can give you a great climate and standard of living.
France
France has recently become a huge highlight for many people wanting to retire abroad. They are one of the best healthcare systems in the world, and it is affordable. There are beautiful beaches that are on the Mediterranean, and they have some lovely mountains. Life seems to be great, with world-class cuisine and affordable living. France would be a wonderful place to retire to.
Greece
Many people visit Greece because of the culture, food, and beautiful Mediterranean beaches. It also becomes a popular retirement destination for those people to live. With a mild climate, many people can enjoy living in Greece and get by by spending less money.
Spain
Spain is often on many lists for affordability, a great lifestyle, and fantastic healthcare. So why not retire there? The big cities of Madrid and Barcelona offer many people city life, while the rest of Spain has beautiful beaches and unique little towns. The food, culture, and lifestyle will allow you to enjoy this beautiful country of Spain.
Italy
Famous for food, wine, and culture, Italy is a great place to go and retire to. It offers a fantastic lifestyle, excellent healthcare, and a diverse country with beaches, mountains, and relaxing towns. No wonder people in Italy live one to five more years than the rest of Western Europe. As a country to retire to, you will find that life in Italy will be enjoyable.
Panama
Panama is one of the top places for people to retire too. The low cost of living makes it an excellent spot for Americans to stretch their retirement dollars. The lush forests, beautiful mountains, and gorgeous beaches make it a place you want to spend the last years of life enjoying. They also have one of the best retiree visa programs in the world, offering many benefits to people that want to retire there.
Mexico
If you want a place closer to home, check out Mexico. Mexico has excellent transportation to the U.S., a low cost of living, beautiful beaches, and delicious food. The cost of living is meager, meaning you can save more by retiring to Mexico.
Ecuador
Ecuador is the southern neighbor of Colombia, offering fantastic food, a great temperate climate, incredible coasts, and the chance to see the Galapagos islands and visit the Amazon. With the low cost of living, most people can get by by spending anywhere from $1,500-1,850 a month. It is starting to become a big-time retire destination.
Belize
If you want an excellent place to retire and speak English, visit Belize. It has sprawling beaches, fantastic seafood, and friendly people, and it is affordable to live there. Under Belize’s Qualified Retired Persons program, those who are retired will be tax-exempt on all passive income from other countries. The cost of living can range from $1,200-1,700 a month. Not bad for retiring in another country. Look at Belize for a great place to retire to.
The Philippines
The Philippines archipelago is full of over 7,000 different islands, and with so over 200,000 U.S. expats living there, you may wonder why. The Philippines has beautiful weather, fantastic food, and cheap low-cost living. The Special Resident Retiree’s Visa also brings benefits such as exemptions on certain custom taxes, travel taxes, import taxes, and taxes on income. These tax benefits are hard to turn down.
Are You Ready to Move?
Living in your country to go elsewhere can be scary. Still, opportunities to travel, enjoy life and find a more affordable place become options as we get closer to retirement age. You never know where life may take you, but you can have options with this list of the best countries to retire to. Enjoy your golden years.
Top 10 Countries to Retire Abroad For Americans
As the population ages in America and many retirees have money to spend, they are looking for ways to enjoy life. Many retirees have been looking in other countries to live it up as they see more affordable countries to live in. Countries are taking notice of this influx of American expats and have been creating incentives to attract more retirees.
Retire Like a Boss: Top Things Successful Retirees Do Differently
Retirement is something that a lot of us are working hard towards and can’t wait to reach it.We think about it as this glorious stage in life where we get to do what we always wanted to, spend more time with family and friends, travel, explore new hobbies, and enjoy ourselves.
Retirement Reality Check: The Top 10 Things Seniors Regret About Retirement
Retirement is an exciting time for most seniors but it can also be scary. The thought of becoming financially and emotionally independent from the workforce is daunting. To help alleviate some of these fears, we’ve compiled a list of the top ten things senior citizens most regret about retiring so you can start your retirement off on the right foot!
I’m Steve. I’m an English Teacher, traveler, and an avid outdoorsman. If you’d like to comment, ask a question, or simply say hi, leave me a message here, on Twitter (@thefrugalexpat1). Many of my posts have been written to help those in their journey to financial independence. I am on my journey, and as I learn more I hope to share more. And as always, thanks for reading The Frugal Expat.
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18/18 SLIDES
6. Living to 100: Trivial Pursuit or Wise Choice?
In a strikingly pragmatic remark, someone pointed out that the desire to live to 100 may be trivial. The relentless march of time will inevitably bless most individuals with a long and fulfilling life, whether they seek it or not. Ultimately, the decision to have a happy or miserable life during the last decades is in one’s own hands.
7. Balancing Expenditure and Savings for Life
A person in the thread emphasized striking a harmonious equilibrium between expenditure and savings. The belief that one must choose between enjoying life and being a miserly saver is a false dichotomy. The user pointed out that finding a sensible balance is key and noted that many people think they can only enjoy themselves when they have money.
8. Achieving Homeownership Solo or with a Partner
A user confidently asserted that the estimated income of the individual is more than sufficient to acquire a house, even if they embark on this journey solo. However, if they join forces with a partner, attaining this goal becomes all the more attainable.
9. Small Savings, Big Difference for Retirement
A sage soul proclaimed that a lifetime of renting necessitates financial preparation for retirement to cover the rent. A mere pinch of saving at present could work wonders, and starting young allows even a tiny sum to burgeon significantly by retirement. And with an employer’s contribution to the pension pot, laying the groundwork for a secure retirement is attainable.
10. True Bliss: Financial Stability for the Future
At long last, a wise user imparted a valuable lesson: pursuing a good time need not entail splurging all your cash. They proposed that true bliss can be found when one has a sense of financial stability and assurance for the days ahead.
As people get older, their priorities tend to shift, especially if they have a family, and they may want to spend more time with them. It means growing old together; in retrospect, their younger self may regret not thinking more about their future. The user emphasized that making relatively small sacrifices now could lead to much larger benefits in the future.
