Getting started on retirement planning

When it comes to retirement planning, there is no one-size-fits-all plan. Retirement has a different meaning for each one of us - in fact, retirement aspirations have evolved with time. Although financial planning will have to cater to individual needs and wants, the necessity of having enough to live comfortably in your golden years remains the same. With sufficient planning and the discipline to follow through with your plans, you can make your dreams of a comfortable retirement a reality.

Here are some key tips to become retirement ready:

1. Build up your savings

   When you are young, retirement might seem like a distant dream, but it is never too early to start preparing for it. It’s always a good idea to save instead of spending your entire paycheck. For best results, choose a bank account that gives a good savings interest rate, and/or has bonuses that can further elevate your savings amount that you decide to save monthly from your salary.

2. Find out how much retirement income you need

   Think about your ideal lifestyle when you stop working and estimate how much funds you will need to retire. Start by figuring out the monthly retirement income you will need by considering your daily necessities budget such as cost of groceries, transportation, utilities etc. Be sure to make provisions for healthcare related costs too.  Next, include your discretionary spending budget such as your travel plans, getting a new smartphone whenever the latest edition comes out etc. Multiply your desired monthly retirement income by the number of years in retirement to give you an idea of how much funds you will need to retire. Once you have an idea of how much funds you need when you retire, be sure to adjust the figure upwards for inflation, which raises the cost of living from year to year.

3. Invest your extra cash

   Instead of leaving all of your money in your savings account, why not channel your extra cash into investment plans such as Bonds and Mutual Funds? You can also consider a mix of lump sum investing or a regular investment plan.

4. Protect & grow your money with insurance

   While your find all means and ways to save and grow your cash, your need to make sure that your hard-earned money is protected as well. A full suite of insurance plans that cover health, hospitalisation, life, critical illness, personal accident and more can help with that.

   Others, such as insurance savings plans, endowment and unit-link insurance policies can also aid you in growing your cash while providing additional protection to your existing insurance portfolio.

5. Talk to your wealth planning manager

   While almost everything can be done online on your own, sometimes the human touch makes a big difference. A wealth planning manager can help you estimate the amount of retirement income you need and build a unique retirement plan for you based on your individual needs. He will also be equipped to provide suggestions of a savings and investment solutions that can help you achieve your retirement plan.

Gain peace of mind with life protection up to 99 years old and Death Benefit up to 100% Sum Insured, Cash Benefit of 20% Sum Insured at 70 years old, and Fixed Basic Premium throughout the payment period.

Be future ready