THE ESSAY PROMPT IS BROKEN UP INTO FOUR QUESTIONS:
1) What age do you plan to retire?
2) How much money do you think you will need to have saved prior to retiring?
3) What are some of the key decisions you will make in your life to ensure you can retire at the age you want?
4) What are some of the biggest mistakes people make that hinder their ability to live comfortably in retirement?TO RETIRE
- HERE IS MY ROUGH DRAFT:
I plan to retire when I am no longer in healthy condition to function or serve society. I predict that I will no longer function adequately and efficiently around the age of sixty five or above. Sixty five is a number that most Americans dream to get to because that is the age when they can retire and enjoy their lives with their spouse and loved ones. For others, sixty five can be a dreadful number. Some people love working and the thought of going a day- a lifetime without work, can be dreadful and scary. Admittedly, I too am afraid of going a day without working and serving society because I have so much that I want to accomplish and contribute in the fields of science and engineering. After graduating from high school I will attend the University of Nevada, Reno to obtain a master's degree in mechanical engineering. My time spent their will last a total of four years. For my doctorate's degree, I plan to attend either Stanford University or the Massachusetts Institute of Technology. By the time I complete my doctorate's degree I will be around the age of twenty nine or thirty years old. Most likely I will have a career by then and have the opportunity to start saving money for my retirement. To live an ideal and comfortable retirement, Benefit Consultant Aon Hewitt predicts that the average full career worker will need to have banked eleven times their annual salary (business.time.com). On average, mechanical engineers make $77,020 per year which, according to Aon Hewitt, means that I will need to have saved roughly $847,220 before retiring. I do not have a specific target number for my savings prior to retiring, however, I like Hewitt's projections and would feel comfortable saving at least $840,000. I am more pragmatic and believe that a comfortable retirement savings should be based on my lifestyle and spending patterns rather than my income.
Currently, I do not pay any bills or worry about living expenses such as bills, food, and clothing. In the future I will have to worry about living expenses and live within my means but as of now it's hard for me to determine what expenses and costs I will have to eliminate to meet my retirement target number. One thing that I am doing, however, is taking the proper steps to reach my career goals so that I can have a financially secure lifestyle after retirement. Pursuing an education is the single and most important step that I am taking right now to set myself up for a happy future and retirement. I am the first high school graduate in my family and living a life of poverty has motivated me to obtain a financially stable career. Coming from a family that has not valued an education, in part, has influenced me to attend college but more so is my own desire for a valuable education and secure source of income. In addition to pursuing a higher education, I am also seeking employment opportunities available at the University I will be attending to save money for graduate school. These small yet powerful steps I am taking at this chapter in my life will help me reach my ideal retirement age and savings. Some of the biggest mistakes people make prior to retiring are spending too much money and not knowing what they're going to do after retirement; this is especially true of professionals such as physicians and medical doctors who do not have time for hobbies or extracurricular activities. Another major mistake most people make prior to retiring is poor planning. Too often, people wait until a year before they retire to inquire their manager or financial supervisor about their retirement benefits and entitlements. I believe that a successful retirement plan should developed/considered five to ten years prior to retiring; this will enable the retiree to determine how much money he or she will have available for expenses, luxury, and bills. To avoid these common mistakes, I plan to switch from full-time to part-time employment and then decide whether or not retirement will be a healthy decision. If I do not meet my target number at 65, then I will postpone my retirement until I reach my desired savings and goals.