Today’s Wonder of the Day was inspired by Bryson. Bryson Wonders, “what happens when you retire” Thanks for WONDERing with us, Bryson!
Has anyone ever asked you what career you want? Probably so! It’s a question many kids spend a lot of time thinking about. Even many adults make plans to switch jobs or careers. But have you ever thought about what you’ll do after your career?
The period of life that comes after a person’s working years is called retirement. Not all people retire. However, those who do need to plan and save money carefully in order to retire.
In the United States, the traditional age of retirement is 65. Some people retire earlier or work longer. Regardless, those who retire start preparing for this stage of their life many years in advance. In fact, experts say that it’s important to save for retirement as soon as you start working.
How do people prepare for retirement? First, they need to set a savings goal. To do this, they set a target retirement age and estimate how many years they’re likely to live beyond retirement. Most people estimate they’ll need enough money to live for 20 years after they stop working.
Next, it’s time to start saving! There are many ways people save for retirement. Many employers help people save for retirement and even contribute to their savings. For example, some companies offer a 401(k) plan. This allows people to put money from their paycheck into their retirement savings before taxes are taken out. Often, employers will match employee contributions to these plans up to a certain amount.
Many people also open Individual Retirement Accounts (IRAs). IRAs also have tax benefits, and people can deposit up to $6,000 per year in these accounts. The money in both 401(k)s and IRAs is invested. That means the amount in these accounts will fluctuate with the stock market. The goal is to build up a retirement account faster through investment.
Many governments also help people prepare for retirement. In the U.S., many retired people receive Social Security payments. For many people, this makes up about 40 percent of their income after retirement. In some other countries, retirees receive similar payments from a pension system.
What do people do in retirement? They get to choose how to spend their time. They might spend more time with friends and family members. Many give more time to their hobbies or pick up new skills. Some people travel the world!
Sometimes, people even get new jobs during retirement. In these cases, they’ll often take a job doing the thing they most enjoy instead of focusing on how much money they’ll make. Many people also become volunteers working for causes they care about during retirement.
Do you know anyone who is retired? How do they spend their time? Do you dream of retiring one day? If so, start planning early! It’s never too soon to start preparing for retirement.
Standards: CCRA.R.1, CCRA.R.2, CCRA.R.4, CCRA.R.10, CCRA.W.2, CCRA.W.4, CCRA.W.7, CCRA.W.8, CCRA.W.9, CCRA.W.10, CCRA.L.1, CCRA.L.2, CCRA.L.3, CCRA.L.6, CCRA.SL.1, CCRA.SL.2