Why Retirement Planning Is Important
Retirement planning isn’t just a financial decision; it is an important step towards a secure future for you, your family, and your business. At Falcon Wealth Planning, we know that understanding the ‘why’ of retirement planning can help you make the right decisions for your future. In this article, we explain the what, why, when, where, and who of retirement planning.
Who Should Begin Planning for Retirement?
Everyone should have a secure retirement. No matter if you are self-employed, an employee, or a business owner, it is possible to set up a retirement plan that is suited to your financial situation. On the employer’s side, providing a good retirement plan can increase employee productivity and lower the cost of training new workers by offering tax-protected benefits. For employees, this means building up a pension pot from contributions that may reduce your taxable income and grow tax-free.
What is Retirement Planning and What Are the Benefits of It?
Retirement planning is the process of saving money during the working years with the aim of having a comfortable retirement.
A good retirement plan will provide many benefits:
Financial Security: Experts have pointed out that retirement can stretch up to 30 years. To fund your lifestyle, you may require up to 80 percent of your annual salary during retirement.
Employee Advantages: Experts also argue that the contributions made by the employers are tax-deferred, and the assets in the plan grow tax-free until distribution.
Business Benefits: A flexible, tax-advantaged plan can improve your business’s benefits package and lower overall costs through available tax credits.
How to Begin with Retirement Planning?
It is easier than you think to get started. First, you should meet with professionals who know about retirement planning. Here at Falcon Wealth Planning, we are ready to assist you from the beginning of the process until the end.
We can assist you in selecting the proper options for you—it ranges from determining how many dollars you will require to choosing the plan that is most appropriate for your situation and lifestyle, as well as meeting the goals that you have for your business.
When is the Best Time to Begin Your Retirement Planning?
The best time to plan for retirement is today. When it comes to retirement savings, time is one of your most valuable resources. This is because consistent early contributions, even in small amounts, will accumulate interest and investment returns over time.
Find out that the average Social Security benefit is $1,200 per month and that relying only on such income may not be enough to maintain your desired standard of living. The sooner you begin, the more secure your future will be.
Why Do You Need to Plan for Retirement to Secure Your Financial Future?
To understand the importance of retirement planning, you need to understand the importance of retirement in your financial life.
This means that if you plan now, you will either live comfortably in retirement or face financial problems in the future. Here are several reasons why it is crucial to set up a retirement plan:
Longevity of Retirement: This is because retirement can last for over 30 years, and this means that there is the need to have enough funds to cater for the entire period.
Income Replacement: You may require a fairly large portion of your pre-retirement income to maintain your way of life.
Tax Advantages and Growth: Both the employer and the employee contribute heavily taxed funds, but the contributions made grow freely and can become a large retirement fund over time.
Structured Approach: From selecting the right plan, setting it up, running it, and even winding it up if needed, a systematic way of retirement planning can help you get and keep many financial gains at all the stages.
Are You Prepared for Retirement?
At Falcon Wealth Planning, we are committed to helping you to understand the importance of retirement planning and how to go about it so that you can come up with the right plan for you.
Contact us today and let us help you secure your retirement and enjoy your golden years without having to worry about money. We can help you build a future where financial freedom is attainable.
*The content in this blog is for general informational purposes only and does not constitute personalized financial, investment, tax, or legal advice. Falcon Wealth Planning, Inc., a fee-only, true fiduciary, registered investment advisor, provides this information to give a broad understanding of financial concepts and strategies.