The Importance of Setting Up a Pension Fund — Retirement funds are savings that we save for use in unproductive age (retirement). Unfortunately, we often forget about the importance of preparing a retirement fund from a young age. In fact, there are many advantages that we can get if we have it.
What is the real importance of preparing a retirement fund? Why do we have to start preparing it from a young age? Whiz has 6 reasons why it's important to prepare for this! Come on, let's see together!
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6 Reasons It's Important to Prepare a Retirement Fund
Here are 6 reasons why it is important to prepare a retirement fund that you can consider!
1. Preparing Funds When It's Not Productive
In old age, humans can be said to be unproductive. Both in terms of age that affect career and health. Therefore, it is very important for us to prepare a pension fund from a young age.
The goal is that we have money savings that can be used when we are no longer productive at work or when our health is no longer supportive.
2. Can Do Dream Activities In Old Age
Who wants to take up a new hobby or visit new places but doesn't have the time? If you are one of them, you can start preparing for retirement! The goal is that when you retire, you can use the savings to do the things you've always dreamed of!
3. Helping Other Family Members
We often see around us that there are parents, grandmothers, grandfathers, who still support other family members. Maybe not completely, but they still give money to help the family. Well, if you also come from a family with large members, you can start preparing a retirement fund for that purpose.
4. Career and Financial Planning
If you have a clear retirement savings plan from a young age, it will be easier for you to plan your career direction and make financial decisions. Determine the retirement savings target you want, then look for a career with an income that can support that target.
5. No need to worry about being a burden on your child or family
When we are at an unproductive age, sometimes we worry that we are a burden to our children or family. It feels awkward to ask for financial help and just rely on other people. Pension funds exist to help with this. If we have retirement savings, we can be financially independent even in old age.
6. Saving Investment Profit
Who likes to invest? You can also lol, invest for retirement! You need to start investing in retirement funds early so you can get accumulated profits from year to year. The sooner you save, then return the benefits you get will also be even more!
Also Read: 6 Tips for Managing 3 Million Salary Finances
Those are 6 reasons why it's important to prepare a retirement fund. Not only for self-interest, pension funds are also here to help families. Make sure you have a solid and consistent plan!