Retirement planning is the process of preparing for life after paid employment. It involves determining retirement income goals and the actions and decisions necessary to achieve those goals. This planning typically includes evaluating financial resources, such as savings, investments, pensions, and Social Security, as well as estimating future expenses, including healthcare, housing, and lifestyle costs. Individuals often develop a savings strategy that entails accumulating funds through various investment vehicles, like retirement accounts (e.g., 401(k) or IRA), to ensure they can maintain their desired standard of living once they stop working. Effective retirement planning also takes into account the timing of retirement, tax implications, and potential risks that could impact financial stability in retirement. Overall, it aims to provide individuals with a clear roadmap for financial security and well-being during their retirement years.
Anticipated financial changes for retirees include pension hikes and increased aid for storm-affected individuals, pending validation by the Congress of Deputies. Contributive and state passive pensions will increase by 2.8%,…