Retirement security and its hurdles

One does not need to work for a financial institution or be a financier to understand money’s worth, particularly a hard-earned salary. This crucial commodity becomes more complex when a person retires - every penny counts.

In money talks language Money is a liquid asset. However, it cannot be so fluid because its usefulness is intended to be durable. For myself and many others, money is the guarantee of daily subsistence, long-term healthcare, and less leisure, including the need to have a liquidity cushion. Spending habits and financial management have to be adjusted to a lifestyle without a regular income.

It is positive that some individuals manage to save through their lifetime. However, not everyone can afford to save. Those with big fat wallets are focused on preserving or increasing their portfolios. Those with thin wallets are more concerned with having enough to pay the bills.

The situation is far more critical for retirees, and particularly expatriates, because there is no free medical care, pension, or benefits provided. Even buying a car involves a significant upfront investment. Everything has to come out of their savings, and that is when things become frightful because, with increased life expectancy, rising living costs, taxes, and inflation, the liquid asset may become less durable. The prospect of working longer years or spending less money during retirement can shake individuals’ confidence.

Government bonds are among the safest investing options for retirees. A predetermined fixed interest rate with the promise (hopefully) of crediting payments on due dates, or at least two to three working days following the transaction date. However, despite exceptional technological advancements, which allow transactions to be resolved on any business day, capital might be tied up by one week within operating systems.

How can someone who has not experienced or developed the concept of saving advise us on how to make our money endure till we die? These advisers may be highly literate in money and investment concepts as described in the books, courses, or even through in-house training. However, the young wealth adviser generation is likely better at spending than saving.

Now, if a person fails to pay for his credit card bills or loans by a certain date, the bank will impose penalties on him. It is also worth mentioning that when convenient for financial institutions, the age limit is implemented. It appears that there is a lack of meaningful concern and engagement between institutions and their target groups.

Essentially, everyone needs financial institution services; therefore, all transactions must be handled with transparency. Customer skepticism can undermine trust. Once clients go, no polished social media marketing will attract them back, unless, of course, options are limited!

As if the concerns were merely about investing hard-earned money and counting on returns, there is also the situation of housing values plummeting. What was once considered a retirement investment is now a concern. In addition to a substantial drop in the value of property constructed only a few years ago, service costs have risen sharply. I am not talking about wear and tear conditions. If one needs to sell his property to help fund retirement, this represents additional losses, including a selling tax.

With jobs already scarce for young people, it is unlikely that retirees would find any paid work. The probability of getting a contract is much less if the retiree is an expatriate. The retiree, with savings invested, is faced with disquiet about whether institutions have his best interest, which I doubt. The senior citizens without savings will have to rely on relatives and the government.

The current volatile situation in a world practically ready to implode can have a detrimental impact on retirement security plans, and this is a topic that needs further attention because people are struggling to save.