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If You Don’t Plan to Retire, Should You Plan to Save?

By: Michael Millington

Short term is not what most people think about when they consider saving. Most people save for the long term, and this includes saving for when your working years are behind you. Retirement is the big savings project that many individuals undertake throughout their lives. The ideal scenario would be to save for retirement and to also save on a regular basis. In general, your form of employment would handle retirement (401k) or you’d save on your own (IRA). But what if you have no plans to retire? What should you do with your 401k or IRA? Should you be focused on saving at all?

The meaning of a retirement fund.

Your retirement fund is what you’re supposed to live on after your working days are done. Some jobs grant you access to a 401k option, even if you don’t believe you’ll retire. However, it’s still important to have a retirement fund to fall back on. Working into your older age you’ll be more prone to injury. Should you find that you can’t (or don’t want to) continue to work past the age of retirement, your retirement fund will be there to provide you with funds to cover your living expenses. Think of it as a safety net, ready to deploy whenever you need it.

What about other forms of saving?

Saving for retirement is a huge reason to save. However, it’s not the only reason to save. There are plenty of reasons to put money away for the golden years. Whether you’re looking to travel the world, buy a new place, or prepare for your final days, having a savings account stashed in some way will always be positive for future monetary needs. Never underestimate the power of putting money away for the future, especially if you’re saving for far off into the future.

Even if you don’t think you’ll retire at any point, you should still dedicate some of your income towards saving. Whether it’s a simple savings account or a retirement fund, having some sort of fallback makes for safe planning for uncertainties and eventualities.