Retirement planning consists of many facets. When planning your retirement in Singapore, you should consider the following:
- CPF
- Tax
- Insurance
- Investments
- Health
- Lifestyle
Different people may have different objectives for their retirement, such as charity, leaving a legacy, etc. But in general, you need to be mindful of the following when planning your own retirement:
Be Realistic
It is important that you set goals that are attainable. Because if you don’t believe you can achieve the goals you set, it is unlikely that you’ll act upon it. In addition, you must also set sustainable goals, that won’t have a negative effect on your ability to meet basic living expenses.
Time Horizon
The age that you wish to retire, and your financial position at the time of retirement are also important. The earlier you start saving for retirement, the better it is. Starting early will give you more time to accumulate savings, and maximize the compounding effects to grow your retirement funds.
Risk Profile
Your risk tolerance when investing is also important, because it will determine which type of investment is suitable for you.
Health
Your health is also a major consideration. Although nobody can accurately predict their lifespan, you can examine your medical history for clues. Some people have a family history of illnesses that are hereditary, which may result in a shorter life span. Others have the good fortune of having a family history of relatives living to ripe old ages.
Standard of Living
The standard of living you desire during retirement, is also a key factor when deciding on a suitable retirement plan.
Desire to Work During Retirement
For some, retirement doesn’t mean stopping work. In fact, some people see retirement as an opportunity to start a second career. This will determine how much money you need to save, before you can retire.
After deriving your retirement goals and understanding the type of retirement the you want, it is recommended that you engage a financial planner to help calculate your retirement needs.
Contact your trusted FLA Organization Financial Planner today.
