Understanding Why You Need To Ensure Your Employer Has A Pension Scheme In Place

The poor man begs alms, homeless Asian man is begging for money

Preparing for retirement is not something that needs to be left for way later in your career. There are very few of us, if any who give a serious thought to retirement at least while in formal employment. We’re here to guide you on how best not to prepare for retirement.

Not focusing on your financial wellness is One sure-fire to make sure you ill prepared for retiremenet when the time comes. A simple definition of financial wellness is “effectively managing your economic life”, Tom Rath and Jim Carter.

Financial wellness encompasses many aspects, including but not limited to being ready for financial emergencies and having a plan for the future. 

For starters It’s important to really consider what it is that you want out of life at the end of the day. One thing you can start right now is considering the importance of asking questions and taking the right measures today that are sure to help you secure your financial future. Below are some pointers to help you get this part of your life underway;

  • Write down a vision for your life and setting S.M.A.R.T goals.
  • Begin to consider wealth instead of merely getting by on a frugal financial plan 
  • Avoid investing in get rich quick schemes, we know them. The ones that promise higher returns with minimum effort, let’s be honest. Building wealth takes a lot of hard work, discipline, integrity and consistency.

Not living within your means is a way to spell disaster waiting to happen. Have a lifestyle check to ascertain if you really need some of the comforts you have gotten accustomed to. Accumulating high levels of debt to afford your lifestyle is not financially savvy and will cost you in the long run as you will be spending more of your income trying to clear the debt as opposed to saving and investing it towards your retirement. 

Not contributing towards a private pension scheme. I think we all know what not having a plan does to all of us, especially financially. You don’t want to find yourself with no means to survive and pay your bills in your golden years all because you failed to plan today and take steps to secure your financial future. Does your employer have a scheme you can contribute to for your non tenable days when your time in the office is over? The statutory contributions your employer makes on your behalf might not be enough when the time comes and its wise to consider other options.