Everyone looks forward to that big exciting day when you can say goodbye to your boss and say hello to your dream retirement. It can be the most enjoyable, life enlightening experience in your whole life time or a horrible financial nightmare if one has not planned properly for your golden years.
Many retirees are now experiencing one of the most disappointing times in their lives. They have more time than money. Why has that happened? Retirement is not what they expected. The bills keep coming but the money to pay them is getting slimmer. They ask themselves, "Did I retire too soon or what?" Or they may be saying, "I have enough money to live on but I need a little extra so I can play".
There are several possible causes for this sobering dilemma. When a person seriously considers retirement they absolutely must have all debts paid; in simple words, be debt free. Retirement almost always means less money or income to pay living expenses and to enjoy the dreams you promised yourself. I have often recommended that a person should practice living on their retirement income for one year prior to retirement. This simple self experiment will guide you in your financial decision. If you can live on the reduced income you are perhaps ready to let go and have fun. You are probably ready for retirement.
Inflation is a killer problem for retirees; especially if one retires on a fixed income. Inflation is here to stay; so plan for it before you retire. Hopefully everyone knows they can not live on their monthly social security check even though there is a cost of living adjustment (COLA) each year.
Here is what inflation will do to you. Let's say you retired in 1994 with a monthly annuity income of $4,500 per month. That is slightly above the average but we will use it as an example. Do you know what that monthly annuity would buy you today on a fixed pension? It is worth $3,262 per month in purchasing power as of 2007 because of inflation. This figure was calculated using the yearly COLA's since 1994 up to 2007. The income dropped well over a $1,000 a month in a 13-year period. It is not uncommon now days for a person to be retired 20 years or more. This is a frightening fact.
People are living longer, so retirees need to plan well for their golden years. It seems unreal, but retirement planning should start early. Start saving when you first start to work; money compounding will grow your retirement income exponentially.
What can a financially depressed retiree do if the month is longer than the money? There are at least two alternatives to consider for increase income:
1. Find a job outside the home. You may think, but I am not physically capable of performing even a part time position or nothing is available where I live or I am too old.
2. Find a stimulating internet home based business. An internet home based business could provide the supplemental income necessary to take up the income sag. And also let you have some extra money to play.
The second alternative is worth serious consideration, especially if you already have a computer, know how to use it and are willing to learn a new venture. An internet home based business has all of the capabilities to enhance retirement income. The challenge is exciting and totally achievable for any retiree that has a desperate desire to supplement their annuity.
There are no upper age limits for starting your own home based business. The only limit is one's desire and ability. Retirement was made to enjoy, so enjoy.