Planning For Retirement

As our standard of living increases, we start to want more things for ourselves. We begin to be more picky about all the things we were once comfortable at.

These lead us to incurr higher expenses, thus having less money set aside for saving, not to mention retirement.

Despite the government education on the public about money issues, there are still a lot of people spending on things they do not need.

Thats where saving plans from bank and insurance company comes in.

Nowadays, the saving plan cater range from short term saving of 5 - 10 years to long term saving of up to 20 years and above.

Many people realise the need for saving, but still some failed to realise the need to plan for retirement. The faults also lies on the financial planner they are working with.

Many financial planner we meet, are only catering to what we wants now and not what we needs in the future.

The essence of retirement planning is looking beyond what you expect during your golden years. We should expect that something might happen anytime during our working years which is from 25 to 62. (62 is the official CPF retirement age)

We should be ready for any retrenchment anytime during out working years, and its part of life. Thats where the short term saving comes in when we are retrenched. It should be able to tide us through a few years in case one is too picky about his/her job.

Then we should have another long term saving which is only meant for retirement purpose. Is should never be touched, and while you are retrenched, you should use a small portion of the short term saving to fund your retirement fund.

PLease note I don't expect you to be jobless for more then 2 years if you are really serious about finding a job, it would not be hard to find a job within 6 months, unless you are really very picky.

Many people whom i met, told me about having CPF as a retirement fund. I do not disagree with that, but please bear in mind that, after using your CPF for housing, how much left do you still have for your retirement, unless you only spend 500 a month for the next 10 years after 62.

If not please, set aside more amount than you need so that you have some spare cash to spend during your golden years then to work through your life.

Everybody have a different need for their retirement, for some, they would like to travel around the world, while some would prefer to stay at home taking care of their grand children.

This certainly means for those who would like to travel around the world needs more money then those who stay at home taking care of their grandchildren.

For a custom made plan for your own needs, please contact your financial planner.