Who is popular today?

How much money will you have in retirement? It depends on the choices and decisions you make during the working years. What happens when you are no longer able to work for a living? If you are forced to retire early because of illness or disability, how will your retirement years be funded? Will you run out of resources? Author Stephen Covey challenges us to "begin with the end in mind". This simply means to think about how you expect things to turn out before you start any project or embark on your destination. What kind of retirement lifestyle do you want to have? Think about it from way before you get to your retirement destination. Have a clear vision of the retirement lifestyle that you desire, then make a plan, and execute it. Every step you make either take you closer to your desired destination or pull you away from it.A recent global study by Oxford University revealed that the novel coronavirus pandemic has reduced life expectancy. This is the largest reduction since World War Two. Life expectancy of American men fell by more than two years. The 29 countries covered in the survey include the United States, Chile, Russia, Spain, Bulgaria, New Zealand, South Korea, and Denmark. In 22 of the 29 countries, life expectancy fell by six months. A reduction in life expectancy was seen in 27 of the 29 countries surveyed. The university concluded that the reduction in life expectancy could be attributed to the official number of recorded COVID-19 deaths.Despite the result of the survey, as a financial advisor I recommend that it is best to plan to retire later, and that way you will not underestimate how much you need to save for retirement or how long your money will last. Remember that inflation is present and future threat to the quality of life you desire as it reduces the purchasing power of your dollar. It's important to put your money to work and keep investing throughout your retirement years. Where will your retirement income come from? Asset income maybe a major plank for your retirement income. Asset income can be derived from stocks, bonds and rental property. Asset income is necessary to supplement pension and social security benefits, which may prove insufficient in retirement.Chief executive officer of the Washington-based Employee Benefits Research Institute (EBRI) says "people consistently believe they are going to retire later than they do". Though normal retirement age in Jamaica is 65, some people may opt or be forced to retire early. This may happen because of redundancies and ill-health. It is, therefore, important to plan for retirement early. When employees start saving for retirement in the early years of their working life, they will be able to have a substantial retirement nest egg. Compound interest and time will work wonders in creating guaranteed pension income. Don't sabotage your future by making minimum contributions. Remember the law of sowing and reaping. Employees or contributors to a pension fund who aim at making the maximum of 20 per cent allowed by the Pension Act are better able to live comfortable in retirement. The sacrifice is worth it. Many retirees regret that they didn't make the sacrifice of contributing 20 per cent of their gross salary to their pension plans during their working years. Our future is paid for by the actions we take today.The Employee Benefits Retirement Institute (EBRI) examined five retirement profiles. The profiles examine five well-defined retirement lifestyles. "The comfortable retirees" believe they have saved enough for retirement or have more than they need. They have streams of income and are of the view that their standard of living remains the same as their working years and intend to spend and invest an insignificant portion of their retirement nest egg during retirement. But "the affluent retirees" have expanded sources of retirement income. They are savers and earn retirement income from defined benefit pension. The majority are homeowners, and are mortgage-free and debt-free. They benefit from a defined benefit pension plan. They believe their standard of living remaining the same or is even better than in pre-retirement. Another category is the "struggling retiree", has little financial assets. They tend to be renters instead of being homeowners. The struggling retiree tend to have declining health and are more likely to have ballooning debts and are heavily dependent on social security for retirement income. The "just getting by retirees" have few financial assets but unlike the "struggling retirees, more than 50 per cent of "the just getting by retirees" have mortgage-free homes, are debt free or have manageable debt. They reported that their standard living is just the same as pre-retirement years and they cite social security as a primary source of income. Finally, the "average retirees" have a fair amount of financial assets. This group is mainly reliant on defined benefit pension and social security for retirement income. Sixty per cent of average retirees seek to invest their financial assets in retirement. About 50 per cent of this cohort are debt-free and majority believe they have maintained the lifestyle they had prior to retirement. One thing very evident is that the "comfortable and the "affluent" retirees are best positioned to enjoy their retirement years. They ensured guaranteed incomes via pension plans and diverse income streams.Grace G McLean is Financial Advisor at BPM Financial Limited. Contact her gmclean@bpmfinancial. and visit the website: www.bpmfinancial.com. She is also a podcaster for Living Above Self.Email her at livingaboveself@gmail.com