Evaluation Of The Benefits Of Personal Retirement Plan
This study focuses about how personal retirement plan benefits the employees specifically contractual employees in malls of San Jose del Monte, Bulacan. Flexibility and freedom are two words that typically comes into our mind when you think of contract or part time worker. Employment really satisfied workers especially in terms of wages which is a return for the service offered. It is a source of financial aspect that is essentially needed to survive the daily expenses. But mostly, employees tend to spend a lot for present time and not to think of saving for the future to achieve future benefits particularly in retirement savings. Retirement is a transition from the field of work into the world of less rigorous activity and more rest and recreation due to an old age and long years of service. It is also serve as the resemblance of existence of people’s life that undergo different stages encompasses the challenges of being an individual. All people will went through this stage and should know that embracing retirement age is not easy due to different challenges. In avoidance of this, it is important to plan a retirement saving to possess a better futureafter working for many years.
Age of Retirement
Nowadays, people are working hard to fulfill the necessities for the living. Saving for retirement has become more complicated for employees due to the complexity of financial decision involved. Regardless of what is the purpose of the retirement, employees must be aware how much they have left for retirement savings. There isn’t just a danger issue of running out of saving but someone should know how to spend money properly. Financial decision making is believe to be associated with behavioral and socio-economic factors, and this factors may be turn in related whether an employee perceive himself to be adequately planning for retirement.
According to Bankrates Financial Security Index (2017), U. S citizen’s biggest financial mistake is not saving for retirement early enough which ranges into 22%. When it comes to retirement savings, Americans know they are falling behind. 78% of US citizens say that they are extremely concerned about not having enough money for retirement. Another 66% believe that they’ll outlive their retirement savings (cnbc. com). Spending money during retirement is a challenge because most retirees have little savings to cover up future expenses. There are social security benefits but those are not enough especially if you plan to go travel. To secure that you don’t consume quickly from your savings, it is very important to create a plan for how to cover up your spending. Some people do not like to hear the word budget because they feel that the process of budgeting will lead to negative connotation. It makes people think of depriving themselves what they want to buy. However, budget isn’t about depriving yourself it is about ensuring the necessary funds needed to spend on things that actually want to spend money on.
Ppsitve And Negative Of Retirement Plan
Furthermore, it is good enough to start retirement planning as early as you are in your professional journey. A research sponsored by Sun Life Financial Philippines, says that out of 100 Filipinos at the age of 65, only 2 are financially secured. Many assume that they get rid a retirement saving on their employer and make a difference later. Otherwise, the perception of employees can be a mistake. The sooner you plan for your retirement, the easier it will be for you to accumulate enough savings in the future to support the life style that you will choose. Personal retirement plan is absolutely essential to contractual employees that only depend on the contract they have entered that will only last into 6 months up to 1 year. Having this kind of employment is such inconvenient especially for the aged worker. As a contractor or part- time worker, the income will likely tend to ebb and flow.
An emergency fund with enough savings can help to ensure that it can cover the expenses during times of low employment. Every employee wants to enjoy retirement after serving and working in their golden years. A retirement savings will allow you to live comfortable by doing the things you want to do and makes it possible for people to change their lifestyle. Retirement planning is a long term process that needs utmost discipline and commitments to effectively implement it. Employer benefits are not only the path to financial security. Planning ahead for personal retirement plan and taking advantage of saving tools are really help contractual workers to have successful journey toward their goal and objectives. It will be helpful if consultation to an expert will included. Based on reliable sources, retirement is leaving one’s job or creasing to work after reaching the required age. Retirement as a government policy began to be adopted by countries during the 19th century and the 20th century (Weisman, Mary Lou 1999). Prior to the 19th century, the average life expectancy of people was between 26 and 40 years. After reaching 40’s, physical impairments began to hindrance in working. Individual’s best work was done before he was forty years old and the reaching the age of sixty, retirement will be exercise. The ages between twenty five and forty will be “the golden years of plenty. ” Employees between the age of forty and sixty were tolerable because they wee merely unproductive. But after sixty the average employees was useless and should be put out to pasture (Osler William, 1905). According to the Mental Health Foundation, two of ten of present day retirees suffered depression. Living alone because of bereavement are more at risk. Physical health problems can also make people exposed to mental health issues. Retirement increases the chances of suffering from clinical depression by around 40% and having at least one diagnosed physical illness by 60%.
On the other hand, many workers tend to work or adopt their jobs at around 55 or 60 and still working for 15-20 more years. Retirement planning is rarely included to the budget of workers. They come to think that savings for retirement will add and burden their expenditures. In such case, many people fails to plan the security of future expenses that will comfortable and satisfaction needs on a certain period of time. Over a million Filipino workers did not hold a regular positions in their company in 2014 (PSA). Contractualization is merely a problem for these workers who haven’t plan for retirement. After 6 to 1 year of working, contract will be expire and financial supports will be cuts. Based on a 2015 study, majority of Filipino workers today are very anxious about exhausting their savings. 9 in 10 or 90% of them today are wondering how they can stretch their money when they retire, as a government supports a little savings (rappler. com). Enjoying life after golden years of working is one of the main objectives of contractual employees especially in malls of San Jose del Monte Bulacan. By proper spending and saving for the future contractual workers will successfully achieve the desires they want on their retirement, including personal retirement plan of your dream vacation, a business venture or in health aspect. Retirement is a life-cycle that comes into one’s life. Appropriate planning and enough knowledge on how to save sufficient money will lead to a good preparation for retirement. It is really important and useful start a retirement plan as early as you can. Beginning in saving for retirement will help employees to have a lifetime protection coverage. Saving for retirement is one of the best financial decisions in dreaming for comfortable future and regretting is not an option.
