The actions that were aimed to take care of their finances and ensure a stress-free withdrawal have changed over time. The same thing that happened to his parents and grandparents cannot be put into practice today. Unless you want to be in financial trouble after 60 years.
Financial future and retirement
There are different factors that have caused this to change and must be considered to adapt. This is how you lived in the past.
The children took care of us
It was very common to have more than 3 children and probably one of them would be kind and take care of us. So much so that maybe you are one of the children who now do that for their parents. Sometimes it was said that the smaller which would take care of parents.
Early independence and marriage
The children used to become independent at an early age, either because they got married or had children, but they really left home and formed a family. This meant that they will start to be economically active at a very early age and start earning money. For this and more, they could take care of their parents.
Technology and information
The habits of consumption and interactions are changing. Sometimes the changes are so imperceptible because they happen so fast, but even so little by little, they change the way we live. All these changes are due to technology, a large amount of information available and the speed to access it. Some of those changes are the following.
Reduction of the birth rate
Currently, the idea of taking care of our parents begins to fade. Hardly our children will do it. This is due to the fact that every time there are fewer children than those who were before. Finding a young family of more than 5 members today is almost impossible. Which reduces the chances of one of our children being kind enough to take care of us.
They will have their problems and financial worries to solve so that we can put our own.
Longer life expectancy
Previously I used to live less time. Life expectancy is increasing, not forgetting that when we reach 60 most people still feel with enough energy to fend for themselves for a few more years. That did not happen before.
Are we waiting to turn 85 and that our only child will take care of us? It sounds very outlandish and unlikely.
Check This Out: 3 Keys to Avoiding Credit and Loan Fraud
Children do not leave home
Currently, children even 30 years old are still living in their parents’ house. If it has happened that they started a family or have children, sometimes the family is enlarged inside the parents’ house. They probably do not wait until they have a well-equipped house to move into. Which can take a lot of time due to the comforts that parents have at home and try to recreate themselves?
In addition to that the real estate market is very different today than before. The population has increased considerably so there is more demand for houses and prices go up.
Save, save and save. Just as our projection of life is greater, from today we must ensure that it will not only be a long but comfortable life. Of course through savings to achieve it. Life insurance or voluntary contributions are excellent to ensure that you will have more than enough money for retirement. If you wish to continue obtaining yields, you can also review investment options.