Even though retirement planning should start as soon as possible, sadly, many people decide to postpone it until later in life. There are various risks involved in delaying retirement planning, making it a rather costly error. The risks of delaying retirement planning will be discussed by Bill Schantz.
What You Are Losing When Putting Off Retirement Planning per Bill Schantz
Lack of Funds for Emergency Scenarios
If you don’t have enough money saved for retirement and an emergency arises, you might need to use credit cards or loans to get by. Bill Schantz is aware of how depending on credit cards and loans may leave you in a precarious financial position and make it even more challenging to save for retirement. You might also have to delay retirement due to the mounting debt.
Moreover, another risk of delaying retirement planning, in Bill Schantz‘s opinion, is the possibility of developing unforeseen health problems. This can range from getting a chronic condition to suffering an accident-related injury. These health conditions can quickly become expensive and burden your budget if you don’t have enough money saved.
Taking the Maximum Impact of Inflation
Inflation is yet another danger of delaying retirement planning. Your money won’t go as far as it formerly did because the cost of living is likely to rise over time. This is why it’s crucial to begin saving early so that your funds can increase in value in step with inflation.
Absence of Benefits from Compound Interest
The ability of compound interest to increase savings for retirement is one of its largest benefits. This is the situation in which the interest you receive on your investment increases over time and may even begin to generate interest. If you put off saving for too long, you won’t reap the full benefits of this effect.
Bill Schantz Notes That Limited Resources Are the Biggest Disadvantage
If you put off saving for retirement until later in life, you might find that your funds are gone by the time you retire. This refers to both your material and financial resources. For instance, if you don’t have enough savings, you could need to downsize or sell your house in order to make ends meet. Additionally, you might not be able to fully enjoy your retirement if you haven’t taken care of your health.
Living Above Your Means
Outliving your finances is one of the major risks of putting off retirement planning. Given that women often live longer than males do, this is especially concerning for them. If you don’t have enough money saved up, you can have financial difficulties as you get older. It’s crucial to make plans for a longer retirement than you might have in the past because the average lifespan is rising.
Conclusion
So, be mindful of the risks if you’re considering delaying retirement preparation. Bill Schantz asserts that because of the potential effects these dangers may have on your retirement, you should begin saving as soon as you can. You’ll be more equipped to handle anything life throws at you if you get started as soon as possible.