That the life expectancy of human beings is increasing is no longer news. And this adds one more concern to the badly hit Argentine economy. What are we going to live on when we are old?
According to quote BBC World, Japan It is the country in which the sale of adult diapers has surpassed those for babies for more than a decade. This is just a sample of how the population ages, with fewer children and increasingly older adults. It is a trend that grows year after year, a clear indicator that life expectancy is increasing in much of the planet. Faced with this reality, it is necessary to ask ourselves: how are we going to continue managing our economy so many years after we retire?
If we take into account that this aging of the population puts in check the retirement system of any country, even the most developed, and that in Argentina this system is not self-financing (there are 1.8 workers contributing for each person who earns a monthly (when the ideal number would be 3 contributing workers for each retiree) it is logical to think from now on a strategy for when we retire, whether it is 5, 15 or 30 years away.
Savings: What are the alternatives?
Currently, many insurance companies have options for retirement, which consist of making a voluntary monthly contribution (with the possibility of making semiannual reinforcements with bonuses, for example). The interesting thing about these proposals is that the contributions are made in pesos but are invested in dollars, which makes them a good option to protect their value and make it grow. Of course, no one would think of saving pesos for 20 years, which is why it is essential to look for options that do not lose value over time.
A fundamental fact: that the contracted insurer has years of experience, if possible in the international market. This assures us that we will have sufficient support and that we will be able to count on that money when we need it many years from now.
What does it take to be able to achieve these savings consistently for so long?
The first thing is to convince ourselves that it is a long-term project, something we are not used to in the maelstrom of the Argentine economy.
But these types of decisions are also necessary, so that our future self does not suffer the consequences of not having taken action now.
Some tips to see that these savings are possible, even in the economic reality that we are experiencing in 2024:
- Get informed and look for options that adapt to your current budget. In many cases it is not necessary to have large sums of money. It is more of a decision than an amount itself.
- Include these savings in monthly expenses. Do not wait “to see what is left over”, because that is the guarantee that it will not come to fruition.
- For self-employed workers, a good way is to calculate a small percentage of each amount invoiced (for example, 5%) and that can be the amount allocated to savings. It could vary from month to month, but it would be a way to prioritize it, just like the rest of the month’s expenses.
- Take advantage of extra sums (bonuses, performance bonuses, insurance) to make a larger contribution. If that money is not going to be used for other purposes, saving it is the best way to put it to good use.
Of course, it is not something that applies to all budgets right now. We have more pressing issues to resolve, that’s for sure. I see it daily in the queries I receive through moneyenorder.com and I also experience it in my own family economy. But retirement is also important, and that is why it requires us to prepare now.
Unfortunately, the salaries we collect will not be enough for us, it is a fact. They were not enough 30 years ago when Norma Pla was a symbol of struggle. They were not enough in recent years, nor now. And most likely they will not be enough in 15 or 20 years. That is why we have to take care of ourselves now, starting with informing ourselves and losing our fear of the long term. Retirement is coming to all of us, and it is better to start preparing as soon as possible.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
