Mentioning to retirement, it sounds really inapplicable to people in younger age and working age, particularly the financial planning which is rarely realized as they thought they still have enough time left to do.
Nevertheless, do not forget that money saved for retirement spending must be earned during working age to cover expensive costs of living. Let’s explore what surprising expenses in retirement comprise of.
- Daily expenses are not decreased: We probably thought that we stopped working life and going out in retirement age, but the retired people actually have more spending on going out activities and food which could be more expensive due to the emphasis on quality of life. They become incapable to travel by public buses or they need more healthy food. Moreover, daily costs of living tend to increase as a result of the future inflation rate.
- Costs of medical care: When we were young, we might spend not much for medical care. However, health care becomes more important when we get into the retirement age. We must prepare for costs of full medical check-up packages, medical care and medical equipment which are rising year by year, ranging from thousands to millions of Thai baht currency.
- Social interaction costs: Are you thinking that in the retirement age you will stay at home as the idol of your descendants? In fact, staying at home is boring, so many retired people spend money for travelling abroad with friends or making merits and charitable donations. Such activity not only allow them to spend time with friends, but it is also a channel for sharing happiness with the society.
- Descendant support costs: The aging people do not only receive cares from children, but they also continue the role of caregivers or supporters for their descendants that costs a lot, for example on the Chinese New Year Celebration Day, the commencement day which is a special occasion or the wedding day which is an auspicious occasion. Therefore, large amounts of money must be prepared for giving descendants as starter amounts for wealth. Moreover, we need much money for extending our own prosperities.
Have you ever noticed that expenses of aging people are not less than younger ones? In some cases, the elderly’s spending becomes higher. As a result, financial planning which focuses on physical care and economic security is very important. Retirement planning should start as soon as possible, especially while we are able to earn incomes. At present, a retirement plan can be completed easier because there are various financial products offered as efficient options, such as long-term savings programs for future spending or the unit-linked pension insurance plans which provide both coverage and retirement savings. For anyone who can accept higher risks, investment in the funds under the risk level suited to the investment term and age of an investor is also an interesting option for retirement planning.