At what age do you think you will stop working and retire? Have you even thought about it yet? Probably not as it is so far away! If you played the Game of Life, you have already experienced the game's version of retirement, where your children each give you a gift of $10,000—not so bad—and then you must choose to retire at Millionaire Estates or Countryside Acres. Each option has its benefits and risks.
Retirement refers to the time of life when you choose to permanently leave the workforce. The standard retirement age is 65, however you must decide for yourself exactly when you will stop working. You must also figure out how much to spend in retirement and where your income will come from.
Saving for retirement is hard to imagine now as you may already be saving for college or a car; but as an adult saving for retirement, it's important to start early. Setting retirement goals, saving for retirement, and implementing a strategy are all part of retirement planning. Starting early will help you grow your money throughout your lifetime by utilizing compound interest.
In this lesson, you will learn more about retirement planning, sources of income in retirement, and medical insurance available.
Question
While most people want to retire, many don't have enough money saved up to do so. What is retirement and why is it important to start planning for retirement when you are young?
Retirement is when you stop working and no longer have an income to rely on. It is important to plan how much income you will need in retirement and start saving toward that goal. Starting when you are young allows your money to grow over time.
