Time of retirement is a big issue for many people. The monthly income will be reduced and the couple needs enough adjustment with available money. 25 percent of the people in the World save money seriously for the retirement while 75 percent expect to live as they do now. It is a good habit to be taught to the children from his or her school days about saving for future needs. This method helps the young adults to save money for tomorrow. Through part-time employment, you will be socially engaged and your can earn too.
If you plan wisely, you and your family can enjoy each moment of retirement life. As a working adult, you have to save some money for retirement life. There is a tendency in Modern World, the youth try to spend lavishly in drinks and travel. As the age increases, the people will have age old diseases like blood pressure, diabetics, heart problems etc. For medicine and house maintenance they need enough money. Some young people spend more money on cloths, parties etc. If they save some money every month, they can use the saved money at their pension period.
Some people dream of traveling during retirement or moving to another location after retirement. Some people shift their rest of life in rural places because such places will be calm and there is no rush as in city life. Some people do vegetable cultivation after retirement. Such things give physical exercises as well as pleasant atmosphere in their life. Some of the factors that affect the saving of the future are housing, education of the children, consumerism etc. You can achieve high returns through stock and share. Through this, your saving grows faster.
Defined benefit fund and defined contribution funds are two types of retirement plan. As per defined benefit plan, workers can contribute to this plan. A monthly check or lump-sum payment is guaranteed for that. As per other plan namely defined contribution plan, the employer and the employ may contribute. How much the portion of money to contribute can be determined by the employee. If the employee plans wisely, he gets good returns.