How to age gracefully?

(Thank you for your attention, I will introduce you more financial management information~)

Teacher Liu Run’s annual speech "The Power of Evolution" hit the screen over the weekend, and I spent nearly two hours watching it. I read the entire text in an hour and still feel unfinished.

"Energetic Old Man" is the second most talked about topic by Mr. Liu Run. He mentioned the following figures:

Starting next year (2022), for 14 consecutive years, the number of babies The tide will turn into the retirement tide.

Also next year, China will officially enter a deeply aging society, and the proportion of people over 65 years old will reach 14%-20%.

Teacher Liu also listed some measures taken by other countries to deal with aging.

For example, Japan, in order to stimulate more births, gives money to those who try to have children and gives them holidays after giving birth. Ah, even overseas immigration programs. Regarding aging, I have tried delaying the receipt of pensions and re-employing after retirement. But some are effective and some are not.

You may not know that the average life expectancy in China has reached 77 years.

Many scientists and medical experts tell us that with the advancement of science and technology, this number is rapidly increasing at a rate of three months per year. Eventually, it can be raised to 100 years old, or even 120 years old.

If you are only 30 years old now, there is still a high chance that you will live to be 100 years old in the future.

Assuming that retirement is delayed for five years at that time, men will retire at the age of 65 and women will retire at the age of 60. There are still 35-40 years left.

Calculated based on the annual living expenses of 100,000 yuan (which is already very little, and it is not enough in first-tier cities), you will need at least 3.5-4 million yuan to barely support you after retirement. Get older.

If you have not configured insurance now, you will need to plan additional money for medical treatment and hospitalization in the future.

Then this amount minus the pension you can receive is the retirement goal you should plan for yourself at the age of 30.

How much money do we need to prepare for retirement?

Xiao Yu teaches you a formula here, you can calculate it:

The principal required before retirement = (monthly daily expenses - social security pension) × 12÷5%

5% is the annualized rate of return we pursue after retirement, focusing on stable value preservation.

For example, Mr. Wang next door is 35 years old. After he and his wife retire, assuming that their monthly household expenses are 9,000 yuan and their combined pensions are 6,000 yuan, then they need to prepare before retirement. Principal = (9000-6000) × 12÷5% = 720,000 yuan.

720,000! It seems like a lot, but if we know how to manage money, if we can achieve a rate of return of 10% every year, guess how much money we only need to invest every month to achieve this goal?

The answer is 538.16 yuan!

There is a rule of 72 in economics, that is, if interest is calculated at 1% compound interest, the principal will double after 72 years.

The time it takes for the principal to double (years) = 72÷average annual rate of return

If your annualized rate of return is 10%, then you need 72÷10 (approximately 7 years) can double your investment. The higher the investment rate of return, the shorter the time it takes to double the principal.

This is a more decent way of caring for the elderly that I think of for everyone.

What Teacher Liu mentioned in his report is the "Power Senior" program.

Power Senior sounds cool, but it requires you to retire at the age of 60. Let’s find a new job and do some jobs that are not technically demanding and don’t require creativity, such as being a private car driver.

This reminds me of what was mentioned in a Japanese documentary "Being Broke When Old" that I watched before. There is no retirement in Japan and you have to work until you die. . .

Is this the old life you want?

Anyway, it’s not what I want. If I want to grow old decently, I should start saving money now and manage finances seriously.