Like millions of others who passed through the western education system we are taught to believe in getting good grades in school getting a good job and in our old age we will be taken care of by our pension plans. This fallacy is a myth that for hundreds of years has been perpetuated and is still being passed around today.

The simple truth the government doesn't want you to know is it simply can't afford to take care of our pensioners any more. Millions of pensioners are living in poverty in the west without adequate sources of income. Many have had to result to selling equity in their homes in order to survive and for many their house is the only financial legacy worth leaving behind for children.

The question many ask is how this ghastly state of affairs happened and how can we change it in the hope of a better and more secure future. So let's start with the causes.

Government Expenditure

Politicians promise us tax cuts from election to election but the truth is tax has gone up by alarming rates over the years. Most of these increases have been stealth taxes i.e. taxes on petrol, food, clothes, savings, inheritance etc. In fact experts put actual tax rates at about 63% of our income when you factor in all the stealth taxes. Governments owe trillions of dollars / pounds spent on wars. The lion share of western revenue is generated through tax and inevitably the burden is passed on to the tax payer. Pensioners realise when they have retired that the payout promised at retirement if they are lucky to receive a payout is not sufficient due to a huge devaluation of currency that results from government debts.

Lack of financial planning

Another reason while most pensioners find themselves unable to retire is a lack of planning. The honest truth is we can no longer rely on our governments to take care of us in out old age. Relying solely on our pension plans is financial suicide as most likely when we retire the plan will not be able to sustain us financially. After slaving away for a lifetime most pensioners have to settle for a reduced standard of living just to survive.

Solution

The key to having a prosperous retirement is simply proactive planning and investment. First we must sit down and draw a financial plan for our future. We must access our current state of affairs and proactively plan how to secure a better future through investing. There are a number of investments that you can utilise for long term financial security. The simplest and most straight forward that anyone can get into is real estate. The stock market and other investment opportunities can also generate huge future income but you must seek solid financial advice before you do so.

The home we live in for most of us is our number one asset. When utilising real estate the simple key to success is to add rental income properties to your portfolio that pay for themselves. The trick to source bargain properties with built in equity and rent several of them out. Once you have done this you are on your way to a better future.

When you retire you should have at least two to three properties that have been fully paid for. This will give you more options in the future with regard to your finance as you can sell or simply living on the income and retire to a warmer climate.

Make a proactive decision to start today by surfing the internet and looking for books and material on real estate and investments (in fact I strongly advise you read at least 3 books on real estate before you start).

I hope this article has been helpful please visit website should you require any financial services.