What Happens When Your Retirement Fund Is Not Enough..?

Just imagine, upon reaching retirement and you discover that your retirement fund is not enough. Surely, there is nothing good that can come out of this situation. Several immediate scenarios come to mind as illustrated below.

• You have to continue working.
• If you do not have a job now, you have to go looking for one.
• If you are unable to get another job due to your age or heath problems, you still need to find a way to generate an income.
• You may have to depend on your own children to support you (if they are working) or you may have to turn to close relatives for help.
• Psychologically and emotionally, you will feel desperate and depress.
• You have to be extra careful on your spending as every cent counts.
• You have to change your lifestyle to ensure that whatever savings you have in hand now is sufficient to meet your needs for as long as possible (known as stretching the dollar). You may have to watch what you eat to cut down on grocery bills, to reduce your outings to cut back on car petrol and maintenance expenses, etc.
• You may even have to sell your valuables, belongings or properties to support yourself and your family. You may even have to sell off your house and move to a cheaper rented place. This actually happened to someone I know.
• Your retirement may not seem like a retirement at all as you continue to struggle to make ends meet. However at old age, you may not have the energy or good health to do the work like when you were young. Retirement is supposed to be a time to rest and enjoy your hobbies, not to continue to earn a living.

Overall, everything in life may seem really bleak. Not only you alone may suffer but also your spouse and children if they are dependent on you. If you are unsure about your retirement future, it is good to do something about it now to avoid the above scenarios. For those who are confident about their retirement nest egg then there is no harm to re-evaluate your financial situation from time to time. Do not forget to factor in inflation as part of your calculation. Remember that RM100 today may not carry the same value 10, 20 or 30 years from now.