Retirement planning is an often overlooked necessity for many individuals who believe that their government or employer will provide for their long term future.
Research reveals that this is all too often not the case and that most reach retirement only to find that they have inadequate provisions.
The problem of long term planning is particularly compounded for expatriates, who often have no company pension provision, and who are left to plan their own financial future with no guidance. Expatriates all too often spend a lifetime moving from contract to contract only to realise that they need to start planning when it's too late.
"A dream is just a dream. A goal is a dream with a plan and a dealine." Harvey MackayLet's assume you start saving at age 25, and put aside $12,000 a year for ten years, and then you stop saving - completely. By the time you reach 65, your $120,000 investment will have grown to more than $2,606,942.58, (assuming an 8% annual return), even though you didn't contribute a dime beyond age 35. Now let's say you put off saving until you turn 35, and then save $12,000 a year for 30 years. By the time you reach 65, you will have set aside $360,000 of your own money, but it will grow to only about $ 1,359,398.53, assuming the same 8% annual return, which is a difference of close to $1,000,000.
"The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it." MichaelangeloTo avoid a shortfall in your retirement savings, you need to keep your finances in good shape while you're living or working abroad.