Mentally Preparing For Retirement

Seniors
You've thought long and hard about retirement, for many years, as if its like winning the lottery. The truth is that it's not quite like winning the lottery, although all governments are heavily involved in all things senior citizen when it comes to money and taxes. You have actually worked your whole life for the government to consider that because you are unable to work anymore after a time, the government will step in to help you in accordance to the length of time you have worked.

The money from the lottery and social security is from a giant pot of other people's money. Both systems are in place because of government regulations. Both are heavily taxed and regulated but one is there because you worked for it, while the other is there because you made a bet and got lucky. It is great to have both and winning the lottery remains a dream for many, while retirement becomes a reality for everyone.

For the numbers I have seen in reviewing social security, the money that comes out for social security each year is anywhere from around $5,000 to $30,000 depending on how much you make and how much they take. Why and how these numbers work is not something I can truly provide with a mathematical formula, however, I can say that the government largely depends on people retiring at 62 or dying early. With COVID-19, millions of people who have paid into social security have died before being able to collect. My stepfather, who was just 4 months shy of his retirement, passed away from COVID.

When a major event like this happens, it does mean the government reserves become more full and they can reallocate the money to other retired people that may need it. It is primitive of me to say that the government makes out on death, but due to the amount of money involved upon death, from social security, to inheritance tax, and even other death taxes, it is probably very beneficial to the government than it is to the parties personally involved. People dying around age 70 years old is the most ideal for the system to work as it does.

So preparing for your retirement means that there is a possibility that you can die before you reach your rightful age. It may also mean that you will live beyond government expectations of retirement. Whether you are ready or not, retirement is ready for you. It is an age at which you may choose to work, but may not need to. It is an age at which you can work because you want to. It is the age of bliss in which you no longer have to work for an employer.

Accepting that you are 62, 66.4, or 70 years of age, which are the chosen ages of retirement for many people and "unlock" access to more of a percentage of money. 70 years of age unlocks over 100% of access, where you could make $3,000 a month, but the average 70 year old at this age is not going to be able to spend that much in a given month unless they lived fancily most of their lives. A person at 66.4 years of age will likely collect around $2,200 which is more than enough for someone of that age to have enough and live on. At 62 years of age, social security comes out to around $1,200 per month, and is enough to meet the most basic needs of an elderly person.

Mental preparations for retirement allow you to foresee and be comfortable with every decision you have made up until now and allow you to embrace the fact that you have worked your whole life and have finally reached the age where the government and society will now allow you to give up your day job and enjoy the "non-working" years. You may even want to see a therapist simply to talk about your life and understand how to live it in retirement.

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