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How To Plan For A Comfortable Retirement In Singapore

Plan your retirement in Singapore well in advance for your senior citizen days. Here are some golden tips for legacy planning for retirement in Singapore.

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Introduction

We all dream of a blissful retirement! However, confidence goes down for many as they near their retirement phase. To have the perfect and comfortable retirement in Singapore, one must plan and start well in advance. Lack of confidence and discipline, job insecurities and poor financial stability can result in poor retirement conditions.

The majority of Singaporeans who responded to a survey conducted by Manulife recently expressed their regret of not having retirement targets in place during the early phases of their lives. Retirement might be complicated and a daunting process. With the help of professional support to do legacy planning in Singapore, your retirement path can become clearer and more productive. 

Here are 10 tips that can help you do legacy planning in Singapore, for a hassle-free retirement planning process. 

1. Plan Your Monthly Income

The first step is to identify your share of monthly income that goes to the retirement corpus. To start with a slab of 5 to 15 percent will do. An overview of your gross monthly income will also shed some light on avoidable unnecessary expenses. For instance, spending on habits that you intend to quit such as smoking, excessive gadget addictions or on an uncontrolled entertainment fiesta, can be channeled to your retirement account. 

2. The Emergency Fund

Emergencies can pop up any moment. A hospital case, an urgent cash settlement, a chunk payment to an unexpected service, anything of that sort is tagged as an emergency. Keep aside a percentage of your monthly paycheck towards this, until at least 6 months of your expenses can be met with that fund. Do a thorough assessment of how much you can allocate every month.

3. Invest in Insurance

A wisely chosen insurance plan can be backup support and financial protection for you and for your family. Endowment plans can be a saviour in case of an unfortunate event. It is also a disciplined way of saving bit by bit targeting your retirement. Peace of mind is extremely important for a healthy retirement — yes, it’s worth it!

4. Clear your Debts 

Senior citizens with less weight on their shoulders, such as education or housing loans, are less likely to meet stress from this angle. Financially it is a huge red flag if you’re carrying debts on to your retirement. However, clearing them as early as possible at the peak of your career is a mantra for success. You can use an ‘Avalanche’ or ‘Snowball’ approach for debt repayment. The former focuses on paying off large debts first and the latter on small ones first. The choice is yours.

5. Multiple Income Sources

Creating multiple streams of income, especially flexible ones that don’t really affect your day job is a good way to earn some extra money. More income means a greater share that you can contribute to your retirement funds. Financial independence is an art that one can excel over the time. Channel your savings into fixed annuities or dividend stocks for additional passive income, if you have some risk bearing capacities.

6. Invest Like a Pro

For a bigger and better retirement nest, you should not just save, but invest! Retirement investment options in Singapore are reflected in the usual shares savings and savings bonds. Real estate is also something that you can play around with, especially if you have a flair for market research and adequate savings to do so. Long term financial growth as well as stability can be obtained from investing. However, there are risk factors associated so do the necessary research and invest wisely. 

7. Top-Up your CPF

Most of us don’t see the value in topping up CPF. Young Singaporeans prefer to have liquid cash as the CPF benefits can be utilized only after retirement. Yet, topping up your CPF should be considered as they have tax reliefs, deductions, high returns and risk-free interest rates in the long term. What greater financial safety could you ask for in your senior years?

8. Health is Wealth

Alongside healthy living, invest in health and hospitalization policies. Pay the premiums, and consider them as the biggest asset building for your retirement. Get expert opinion from a Singapore legacy planner for the right, customized insurance plan for your retirement goals. We all become susceptible to illness as we grow older. Choose the policy that suits your health conditions. 

9. Be the King of Savings

We tend to spend a lot of money on impulsive purchases, especially when younger. This is mainly because we think that the money can be earned back quickly. In fact, you might eventually end up transforming this into habit. ‘Pay Yourself First’ is an approach that should be kept to. Using this approach, your priority becomes to settle your savings bank account requirements first, the moment your paycheck materializes. Remember to make saving into a habit that you want to nurture for a lifetime. 

10. Have a Strict Budget

This is the simplest and most practical way to attain financial discipline. Having a fixed monthly budget and an annual or quarterly one will help you review your spendings at a later stage. That will help eliminate non-essential spendings and help focus on savings. A budget streamlines your finances to the right order. If you start doing budgeting early in your career, the more time you get to focus on the share allocated to your retirement bundle. 

Conclusion

Take into account this comprehensive set of tips for legacy planning in Singapore for a peaceful retirement. Money-making is an art, and you are better at it when you build a concrete financial foundation. Retirement comes easily when you excel at your prime ages of life. Earn good, save well, spend wise and retire happily!

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