Planning for your golden years
We all grow old. While ageing is inevitable, we can make good decisions to help us get well prepared for our retirement life. Here are some tips you can consider:
- Start early
It is never too early to start thinking about retirement. You will then have a longer time horizon to grow your savings before you retire. If you have made investments, allowing yourself ample time will also help you ride out short-term price fluctuations on your investments.
- Budget for retirement savings
Even if you are saving for setting up your own home or furthering your education, you should keep a separate item for accumulating your retirement fund in your personal budget. Also, it's a good practice to save regularly.
- Manage your retirement schemes
Your statutory retirement scheme is an important part of your retirement investments. It is worth spending the time and effort to manage your scheme(s) properly.
- Review your health insurance coverage
The premium for health insurance rises with age. Also, some types of insurance may not be available for purchase for people exceeding certain age. Therefore it is wise to plan ahead your health insurance needs.
- Learn about new retirement products
As life expectancy increases, financial products catering for retirement needs keep emerging and evolving. For instance, annuities have become increasingly popular as an insurance product addressing longevity risk in recent years.
- Invest prudently
You can grow your nest egg through prudent investment. Avoid investing in financial products that you do not understand. You also need to review your risk appetite and investment strategies at different stages of your life.
- Review your retirement plan regularly
Once you have got your retirement plan underway, it is important to review it regularly. Bear in mind that retirement planning is a long-term endeavour and once you're retired, you'll need to keep managing your money.