If you are just starting out or are at the height of your career, it may seem too early to seriously consider retirement planning, especially if you’re decades away from the official retirement age. But what better time to start thinking about retirement planning than now?
We all want a blissful and care-free retirement and the way to achieve it is by starting to plan as early as now. A recent study shows that 1 in 3 Singaporeans think that reality will be different from what they expected. They thought that they would not have enough money saved up, good health to enjoy their golden years, or support from their family members.
While it may seem a long way off right now, starting to plan for retirement is never a bad idea. In fact, there are several things you can do today to help ensure that your retirement years will be easy on the wallet and can provide you with the level of comfort and security you deserve:
Look for a suitable plan.
When choosing a retirement plan, it’s important to look for flexibility. For example, your savings or endowment plan should allow you to choose your preferred premium payment terms, desired retirement age, and duration of monthly retirement income payouts.
Another important factor to consider is how much you need to put aside in order to maintain your desired lifestyle. Determine your required monthly income in retirement and then work out the amount of premiums you will need to pay. By getting these things done now, you will be able to feel secure knowing that your expenses, such as rent or mortgage payments, will be taken care of. It will take the stress out of your retirement years and you’ll be able to have the kind of lifestyle you’d like without having to worry about making ends meet.
Start early.
Setting up a financial plan early in your career will give you peace of mind if you know that your retirement income will be sufficient. Don’t wait to start saving for retirement—the longer you wait, the less time you will have to accumulate financial resources for your retirement years.Start saving now, and spend more of your working years enjoying the benefits of your financial decisions.
Invest and invest.
Investing may help you to reach your retirement goals by accelerating the growth of your money over time. When you invest, you earn interest. You can get even more interested in what you already have. This is called “compounding interest”, and although it sounds simple, it can be very powerful in helping you meet your long-term financial goals.
By making many small gains over time, you can create something much bigger than putting all your money into one big investment. The more time you give your money to grow, the better off you’ll be when you retire.
Retiring in Singapore can be challenging, especially in a rising economy. If you want to retire comfortably, you’ll need to do some financial planning today. Start Planning as early as now so that you can look forward to a happy and relaxed retirement.