Retirement income is the last thing you probably want to think about as you grow older, but it is extremely important. Without a retirement income plan, you run many risks, especially the risk of running out of money during retirement. We have curated a list of 5 reasons why creating a retirement plan is an essential part of growing older. 

1. No Worries About Running Out Of Funds

One of the biggest worries of retirement is that you will run out of money. A retirement income plan is a way to ease your mind and determine how much you will truly be receiving, spending, and saving each month. This way you will avoid overspending and don’t have to pinch every penny in fear of going broke.

2. The Idea Of Forced Retirement Won’t Be So Bad

Sometimes, retirement isn’t a choice. Layoffs and company closings are happening often, leading to a forced early retirement. It is great to have a “just in case” retirement income plan ready at all times in the event that you are let go a couple years before your planned retirement. This will prevent the stress of a new job search and the fear of no income. 

3. You Won’t Become A Burden To Your Children

If you are unable to afford your lifestyle, you may become a burden to your children. While we know our children would deny it, most really don’t prefer to have their parents living under their roof or love paying their parent’s rent. Creating a retirement income plan will ensure you have the funds to live a retirement lifestyle without becoming a burden to your children. 

4. Continuing Your Legacy Will Be Possible

A retirement income plan is a key part to ensuring that you will have money to leave behind to loved ones. You can see how much money you will be able to put into your legacy fund each month during retirement by creating a plan to see how much income you will truly be raking in. A legacy plan will leave you in peace, knowing your family will be taken care of should you pass away.

5. You Will Make Better Financial Decisions

Avoid overspending and know your limits with a retirement income plan. Having a plan with all of your goals and average spending will let you know if a big purchase is in the cards for you. Retirement income plans are an essential roadmap for a financially successful retirement. 

Retirement income planning is essential for ensuring you can live your best life during your golden years. If you are looking for help in creating your retirement plan, contact West Financial Group today.