Have you ever tried speaking with a retirement planning advisor in Singapore?
Retirement planning takes time, which is its greatest booster. The earlier you start planning and moving, the more likely you are to hit your goals and spend a comfortable retirement.
It may sound a bit uncomfortable to think about the future when it holds no certainty, but it’s better to plan than struggle later on. After all, the basic steps of retirement planning stay the same.
Here are some early retirement planning tips to help you get started.
Start saving
Figure out how much you need to save for retirement. Think about the age you would like to retire and the horizon you have to prepare for it. The shorter the preparation time, the more you’ll likely have to save regularly.
The key is to be consistent with saving. Settling bills is important, but so is your retirement. Pay yourself a consistent amount each month or bi-weekly, whatever works for you. The amount can vary depending on your income and expenses.
Don’t get discouraged if you feel you’re not earning enough. It’s not about the money you’re receiving but the amount you get to keep regularly.
Look at your sources of income.
If you’re relying on one source of income, consider finding other sources. You might want to start a small business, offer services based on your hobbies, or get part-time jobs when you can. The higher the income, the more flexible you can be when saving and investing.
As long as you’re spending your money wisely, you should be able to save more and invest more as well. If you’re a citizen or permanent resident in Singapore, the government also has retirement plans that you can tap on during your senior years.
The CPF Lifelong Income for the Elderly, for instance, is mandatory. Consider all these potential sources of income as you enter retirement. And focus on how much you still need to earn, save, and invest as part of your early retirement planning.
Diversify your investments.
It feels great to see your savings account grow over time, but it’s not smart to keep all your eggs in one basket, especially if that basket doesn’t offer much room for growth.
Inflation rates can beat the money in your regular deposit account. Consider investing or diversifying your savings according to your retirement goals and risk appetite.
You don’t have to have huge capital to invest, but you need to understand where you’re investing. Avoid following trends, especially if you understand little or nothing about the investment program.
Investments also offer opportunities for passive income, which is income you don’t work for or money you receive without doing anything. An example of this is income from stock dividends.
Consider consulting with a qualified retirement planning advisor for advice
Wondering how the best retirement plan in Singapore looks like for you?
Retirement planning shouldn’t be an option. Make it a priority, so you can live worry-free in your senior years.
And remember, planning alone isn’t enough. You need to take action too. If you need more information on how to get started, speak with a retirement planning advisor.
That was it for this article. If you found it helpful, consider checking out our blog Daily Social News!
