Responsibility Towards Your Financial Health
Organising your finances is a key step in planning for a smooth retirement, and avoiding finding yourself in a situation where you have inadequate funds to provide the kind of lifestyle you envision. As such, it is important to begin charting your course early in advance, and continue to shore up your finances in the final push to retirement.
On top of your monthly CPF payouts, setting aside personal savings will provide you with financial flexibility to enjoy retirement. The key question is: How much is enough? Many retirement calculators cannot accurately calculate how much you might need for your retirement. Most times, people realise that it is too late for them to save the amount they need for retirement, which is why it is highly encouraged to start your retirement savings early. Much like your physical and mental health, your financial health requires attention from as early as possible. Prevention is better than cure when it comes to health, even in the context of financial health.
Planning your Finances
Work on a formal retirement plan. You can get in touch with financial advisors to help you have a head start on your financial planning. Planning your finances allows you to see the big picture, and set your long and short-term life goals. Having a financial plan also makes it easier to make financial decisions to stay on track to meet your goals. There are many ways for you to stretch your dollar to make it worth more than what it is. This includes buying bonds and investments. As they take some time to mature, having an early start will allow you time to enjoy what you have yield. Recognise needs versus wants so as to manage your lifestyle. Avoid incurring more debt on items that serves little purpose as it can be quite a struggle to clear these debts, especially without a steady monthly income. You can brush up on your financial literacy through workshops. The Institute for Financial Literacy provides free modules on ways to build your retirement income. Click here to find out more.
Retirement can seem far away if you are young, but not starting to save early enough is the top reason for many Singaporeans feeling insufficiently prepared for a comfortable and satisfying retirement. Start planning your finances today, and embark on your route to financial freedom during retirement!