Published in El Pais, 31 March 2018
We do not like to be asked how old we are when it is our birthday and it is a rule you never, ever, ask a women her age (unless they are younger than 20). It is strange thing, but we do not want to be remembered we are getting older every day and are on our way to the unavoidable. But if we lie to ourselves pretending we are forever young, then we could be heading towards an economic disaster.
In USA 70% of the people have saved less than 1000 USD and when they are thinking to retire it becomes almost impossible to survive without any help of the government. A solution is to keep working until the end, but is this possible? Healthcare cost increase when getting older and our bodies are not able to do the same physical activities. Besides, we want to retire enjoying, resting, traveling without any economical constraint.
Am I making you feel scared? It is a bit my objective. But do not worry too much. Here are few things to do.
First, save money. It is hard to say how much exactly but a simple rule of thumb says you need to save about 10-15% of your income to be able to retire. This is incredibly difficult for many people and is the reason why the state helps and obliges us to put some money aside in pension programs. But not in all countries and never fully!
Second, people forget is their house or business has often great value at the moment they retire. If you noticed that you are short on money, sell your house, your business or some antique and enjoy that money.
Some people just say that their kids will take care of them, but is this true? Do they live nearby? Do they have enough income? Also 50 years ago, families were big, but nowadays most only have 2 kids and it will be harder for them to take care. So do not take for granted your kids can take care of your whole retirement. The best is to be prepared and do not evade the topic. At least, do not fool yourself that you are not getting older.
Francis Bacon, an English scientist and philosopher said once: “Age appears to be best in four things; old wood best to burn, old wine to drink, old friends to trust, and old authors to read.” So sheer up, make a plan and stay calm knowing you can get older without worries!
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