Consequences of Not Saving for Retirement

The consequences of not saving enough for retirement can play out in numerous, yet subtle, ways. I think about this every time I go to my favorite convenience store to get coffee. There is a sweet elderly woman who works the counter. Every time I see her, I think to myself, “You should be home relaxing and watching soap operas!” The results of not saving for retirement aren’t always disastrous, but they’re almost always sad. Maybe you have an elderly neighbor who still works a part-time job. Or perhaps you know someone whose parents moved in due to lack of retirement funds. Sometimes, not saving enough for retirement doesn’t spell disaster, but kills dreams instead. Think of everyone you know who wanted to travel the world during retirement but sits at home watching their pennies instead. Unfortunately, not having enough money for retirement will be a reality for far too many Americans. The latest Social Security Administration survey showed that, “roughly 45 percent of working-age households have no retirement savings at all.” If your current pay doesn’t allow you to save for retirement, what are the real-life consequences? Read on to see Real Life Consequences of not Saving enough for Retirement #1: You need to keep working until you die. Rather than saving for retirement, “John” was making withdrawals of $2,000 per month on his $400,000 IRA balance. “John” was told repeatedly that his spending and lifestyle needed an adjustment, or he would never be able to stop working. “John” would always say, “I know, but my pay keeps increasing and the extra revenue will cover my withdrawals. Unfortunately, his pay plateaued, but the withdrawals continued. “John”, is now well into his 60’s. To refill his IRA account, is now working his full-time and added a part time job, instead of retiring. At this rate, “John” will need to work until he is 83 to finally be able to retire! #2: You drown in debt instead of saving for the future. Here is a cautionary real-life instance from a financial advisor. “I have a couple who are clients of mine that don’t have enough saved for retirement. They’ve have fallen short of their goals because of spending what they couldn’t afford and borrowing to make up the difference. #3: You leave your family with financial and emotional stress. Here’s a real-life instance told to us by our Retirement Advisor. “Tony and his two brothers owned a small family business. The business supported Tony’s growing family of six, and he thought that when the time to retire came, he could sell the business to live on the proceeds. He thought wrong. Tony had saved very little outside of the business. When a heart attack forced him to retire sooner than planned, Tony did not receive the amount of money he thought he’d get from the company to support he and his wife Mary. Tony lived the rest of his life puttering around in his workshop and died in peace. After his death . . .sadly . . . though her children supported her financially and otherwise, Mary suffered the emotional stress of limited cash and financial pressures.” #4: Your kids support you in old age. “I have a friend whose parents didn’t exactly save much for retirement. When the husband passed away, the wife had no money to her name and very little money coming in from social security. Because of this, my friend had to completely upend his entire lifestyle to move his mother into his house. It’s completely changed his family’s financial future and blown up their retirement plans/savings. Not saving for retirement can bring an extreme burden on your children’s lives and even cause resentment. So, what’s the Answer?? The answer is actually incredibly easy. You can start a side hustle business to create a new stream of income and use that new income to save for retirement. There are tons of side hustles that you can start for less than $100 dollars. Once your side hustle is up and running, start contributing to a Roth IRA or Solo 401K. As your retirement account grows now you can start planning your relaxing (and maybe) early retirement!! Final Thoughts Unless you have a secret plan to get free money or you're lucky enough to hit the lottery, not saving enough for retirement will leave you scrambling to get by in old age. At the very least, you'll need to work into your 80’s or make serious adjustments to your lifestyle to get by. By making your retirement a priority and starting your side hustle today you can start saving for retirement ASAP. This will ensure you’ll never outlive your money – or worse – wind up living in your children’s basement! Start your side hustle today with this FREE ebook: https://youtube.thebizwizards.com/ebook Disclaimers: all opinions are my own, sponsors are acknowledged. Links in the description are typically affiliate links that let you help support the channel at no extra cost. #entrepreneur #beyourownboss #sidehustle