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Why some of us are destined to struggle financially in our old age ….
As our life expectancy increases, the need to have a retirement income to support ourselves is no longer a nicety. With an average lifespan of 84 and an official retirement age of 63, the math tells us that we will need to support ourselves for no less than 21 years. Even with re-employment up to the age of 67, we will still need to support ourselves for 17 years. More if we live longer than the average.
Dividends as a source of income
As I grapple with the challenge of supplementing my monthly government retirement payouts, dividend income stands out as a viable source for retirees as it is passive and it does not require physical labor (which will be increasingly challenging as we age).
Concerned that my friends and colleagues have not planned for their retirement, I shared my journey as a dividend investor with the intent of encouraging them to start building their own retirement dividend nest egg.
I was not prepared for what I heard ….
“Are there risks? What will happen if the stock prices fall? Money is important to me, I can’t take it if I lose money”.
While there are no risk-free investments, the data shows that the average stock market return (as measured by the S&P) is…
