The Hard Truth About Retiring Without Savings

Retirement is perceived as the dream destination. It is when you don’t have to work anymore. It is a time when you wouldn’t have to wake up early for work. You wake up early for yourself because you want to walk along the garden you tended and meet the sunrise. Retirement is when you don’t worry about paying bills and daily expenses because you’ve already worked your life making sure you have it good upon retirement. It is when all you do all the day is whatever you want. May it be cruising around the world, pursuing your true passion that is gambling or painting or collecting antiques. Retirement is what you have set your life to become after years of hard work.

Retirement is a time when you won’t have to worry about anything but living out the rest of your life the way you want it. And it is to be so because you deserve it. However, what if what you’ve done is not enough and you end up being unable to prepare for your life after work.

Here is a list of things that will probably happen if you retire without savings.

1) You won’t retire
The most obvious outcome of retiring without a savings is that you won’t retire at all. You would have to keep working and delay retirement until who knows when. This could be when you’re seventy and the social security benefits can cover your minimal cost of living or when your body finally gives up. It’s not a pretty picture but if scaring you with the possibilities would spur you into saving yourself then so be it.

2) You sell your assets
Let’s say you weren’t able to save up for retirement but you were able to buy some real estate and some nice cars. You can still live the retirement life you’ve dreamt of, right? Wrong. Without savings, chances are you would be selling your real estate, your car, your jewelry, even that nice watch you’ve inherited from your great grandfather. Living is expensive. You won’t get by just by relying on government stipend. It could only get you so far. So it’s either you make do with what you have and give up on a lot of luxuries you were expecting after working half your life off or sell your hard earned investments.

3) You adjust your lifestyle
You didn’t save anything for retirement, you don’t have any assets to sell, and your body and sanity cannot handle working another day. The only way is to live according to what you can afford. If all your life you can afford that pricey coffee at that classy coffee shop, if you can spend a portion of your salary to travelling and exploring during the weekends, and if you can make do with a little splurging a bit of your paycheck then prepare to give them all up. Because you don’t have money saved up for your life after work, you would have to adjust your lifestyle. Instead of a meal at a nice restaurant with friends, it would have to be a grub beside the street. Instead of buying the latest apple product, you would have to endure your outdated phone. Instead of living comfortable, you would have to be frugal to the point of being stingy.

4) You become homeless
The ultimate bad thing that can happen to you if you haven’t saved up enough for your retirement is that you give up on life and become a hobo on the streets, living the rest of your life begging for change and wondering where you went wrong. Being homeless is not bad. You get to see the world in a different life. And because you gave up on material things, you won’t have to be bound and manipulated by capitalists who only want your money. Because you have no money, it means you are able to live life on what really matters. Of course you would have to understand as well that being penniless means that you would have it hard. Living becomes surviving. If you’re up for the challenge, go ahead and try being homeless so you’ll know what matters most. (Of course, this is sarcasm, try not to be a hobo, it’s a hard life especially if you’re old.)