The best plan is to make one – this applies to all aspects of life particularly when it comes to retirement planning. Yet so many procrastinate, or subscribe to the belief that retirement planning can “wait” or that it is of less importance compared to other current priorities like forging a career, building a family and rearing children.
“It can wait; I have other priorities now.”
Think saving for retirement can wait until you earn more and can therefore save more? According to the DBS-Manulife Retirement Wellness Study carried out in November 2015, the surveyed respondents begin planning for their retirement at the age of 38. Other data collated also suggests that Singaporeans are optimistic about living well during their retirement years, yet less than half are actually on track to making their dreams come true. Planning and taking the right action early will help to reduce this shortfall in expectation and reality.
“I plan to continue to work even as I enter retirement age.”
Running the rat-race is exhilarating when you are in your prime – but can you really imagine yourself working at the same pace when you are entering your golden years? Factor in aging and ailing health which may not allow you to continue working as you wish to, thus putting your retirement income at much risk. Taking steps to save and invest earlier means that you have more time (and breathing space) to build a cushy nest egg.
“I don’t know where to start; how much should I save per month?”
Think of it this way: If you begin planning for retirement at 25, you can start by saving 5% of your take-home pay. But if you choose to wait till you’re 45, you’ll have to make up for the lost years by saving much more per month!
An early start means you have more time to grow your savings. Starting early also allows you to accommodate the fluctuations on your investments and consider expanding your portfolio to accumulate more in the long run. Though late is better than never, you will have to work harder at growing your retirement savings and you may not be able to invest as much as you would wish to.
When it comes to retirement planning, the best time to start is as early as possible! Speak with our planners for more information and they will be glad to assist you!
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