Retirement Goals of an Individual

The retirement goals of an individual can be attained but this is as a result of a confluence of factors. In other words, there is the significant role that is played by a number of variables. It is indeed important to understand the fact that all these variables play a very crucial role particularly in determining the individual’s annual income after retirement. Following from this, the following are some of the fundamental variables that determine the annual income after retirement; time, amount of savings, investment returns

First and foremost, it is imperative to understand the fact that time is a very essential element in the determination of income after retirement. As a matter of fact, the earlier one starts to save, the more the income. Basically, time is a very significant aspect in the sense that a slight difference in the amount of time could lead to a drastic change in the amount of income. This simply implies the fact that the age at which an individual starts saving is very critical in determining the income after retirement. On the other hand, the amount of savings has an equally significant effect. Before retirement, one invests through savings. At this time, the individual earns relatively less. After retirement, the individual dissave hence earns relatively more. Savings is therefore simply an investment in life after retirement. Finally, the rate of return is another inherent determinant of annual income after retirement. The relationship is direct; that the higher the rate, the more the amount. Basically, these three critical elements are all very important in the determination of the annual income of an individual.