20 Jul Rethinking Retirement: Three Important Factors To Help You Plan For A Better Retirement
Planning for retirement might not always be the easiest topic to bring up. We typically work to pursue our financial goals in the course of our careers, and the thought of preparing for retirement is likely to have been relegated to the bottom of our list of priorities.
Alas, the golden years of retirement are an important period of our lives. You will be granted the freedom and time to seek the hobbies or life goals that you might not have had the time to pursue in the course of your working life.
In order for your financial capabilities to match up to the aspirations that you have for your retirement years, it is essential that you give thought to your retirement plan, the earlier the better!
We are here to bust some common myths regarding retirement planning. In the article below, find out the common factors that all of us are likely to neglect when it comes to preparing for retirement.
Longer life expectancy
In a 2013 survey conducted by HSBC, it was found that on average, the Singaporeans who were surveyed expected their retirement to last for seventeen years, but for their retirement savings to last only nine years.
This discrepancy in expected versus actual savings is also made worse by the fact that life expectancy here in Singapore continues to increase.
Being able to live a long life is a blessing, but with the ailments that can come with old age, there can be a strain on the funds that you have set aside for those later years, these are stress factors that you might not have expected.
Since many of us are likely to live for longer than can be predicted by looking at hereditary lines or our health situations, we need to act fast in the present.
A retirement plan might not be a priority as of now, but taking into account the possibility of having the financially struggle in our later years is definitely a situation in which we all would never hope for.
An early retrenchment
A career constitutes a significant part of an individual’s life and you might be working towards the aim of keeping a job until the very last bit before the transition into retirement.
However, with today’s advancement of technology at the workplace and the onset of a digital transformation that might render certain jobs obsolete, the unpredictability of being able to keep a job has multiplied.
This uncertainty in the job market entails that you might not be able to live out your career as expected, and thus your sources of income can be curtailed unexpectedly. If this were to happen to your spouse or loved one, the personal consequences that you feel in your retirement years can be very tangible.
A holistic retirement plan at the outset will equip you with the financial confidence to deal with these unexpected occurrences that can disrupt your wellness in retirement.
Underestimating living and healthcare costs
Consistently ranked highly among the world’s most expensive cities, the high cost of living here in Singapore can take a toll on your retirement fund.
At present, we are already witnessing price hikes and increasing costs. In the later years of retirement, a rainy day fund that can be used in the event of a health issue is especially crucial.
Singapore ranks high on the charts of the rate of inflation of healthcare costs in the region, this essentially entails that your ability to finance any healthcare costs in the future will be diluted as time goes by.
With today’s high cost of living, coupled with hiking inflation rates, the need to start as early as possible on a retirement plan is made even more pertinent.
Start planning today
We are living longer lives, and it is only natural that we hope to enjoy good health in our later years. To sustain a favourable quality of life and to live healthily, it is essential that you are financially safeguarded.
Retirement planning continues to be redefined by the changes we see around us, such as those mentioned above.
To find out more about why a retirement plan is necessary to living longer while keeping to an ideal retirement age, contact our friendly team today and we will be delighted to help!