Retirement planning
In the United States, it’s the norm to assume that you’ll have some amount of government Social Security in old age, but it’s also more common now to invest privately, so that’s what I do. I have an Individual Retirement Account, an IRA, and I’ve set a certain target that I try to save up every year.
I unfortunately don’t have a- an employer who would match my contributions, so I’m doing this alone, but for you, that might vary.
And over time, the money grows. It builds because of the principle of compound interest, so it’ll be more when I actually retire.
Vocabulary:
norm – something that is usual, typical, or standard, “In many offices, wearing business casual attire is the established norm.”
Social Security – a federal program in the US that provides financial assistance to people with an inadequate or no income, specifically retired or disabled people, “My grandmother relies on her monthly Social Security check to pay for her groceries and rent.”
old age – the later part of a person’s life, typically after they have retired, “He spent his old age traveling the world and visiting his grandchildren.”
invest privately – to put money into financial schemes, shares, or property independently rather than through a government system, “Since the state pension is small, many young professionals choose to invest privately to secure their future.”
Individual Retirement Account (IRA) – a type of savings account in the US that allows individuals to save for retirement with tax advantages, “Opening an Individual Retirement Account early in your career can lead to significant savings by the time you stop working.”
target – a specific goal or objective that someone is trying to achieve, “She set a target to save five hundred dollars every month for her house deposit.”
save up – to accumulate money over a period of time for a specific purpose, “I am trying to save up enough money to buy a new car by the end of the year.”
employer – a person or organization that employs people and pays them for their work, “The employer offered a comprehensive health insurance plan to all full-time staff.”
match my contributions – a benefit where an employer adds the same amount of money to a retirement account that the employee puts in, “I decided to increase my savings because my company agreed to match my contributions up to five percent of my salary.”
vary – to be different in size, amount, degree, or nature from something else of the same general class, “The rules for retirement plans vary significantly from one country to another.”
over time – as a result of a gradual process or a long period, “The small seedling grew into a massive oak tree over time.”
builds – to increase in amount, intensity, or size over a period of time, “The tension in the courtroom builds every time a new witness is called to the stand.”
principle – a fundamental truth or proposition that serves as the foundation for a system of belief or behavior, “The principle of supply and demand dictates the price of goods in a free market.”
compound interest – interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods, “Because of compound interest, even a small investment can turn into a fortune if left alone for thirty years.”
retire – to leave one’s job and cease to work, typically upon reaching the normal age for leaving employment, “He plans to retire at sixty-five so he can spend more time working on his garden.”