How to Plan Your Retirement Income?
Saving for retirement is a little something that many people do not consider. This is most true for young professionals who simply want to live “the life” and be in the present. This should not be the case because growing old and retiring without income can be difficult.
That is why you should seriously consider retirement planning in Singapore. Regardless of your age or financial status, it is safe to say that you cannot go wrong with having a solid retirement plan.
If you need help with the said matter, you should seriously consider the following:
Tomorrow might be too late
If there is one thing that many retirement planning in Singapore professionals are passionate about, it is the thought that tomorrow might be too late. With this in mind, it is best not to delay retirement. For one, if you decide to delay it, you will eventually find out it has been a year already, then five years, then 10, then it is already too late since you are already in your senior years.
Putting the said factors into consideration, it is best if you seriously consider your time horizon. That is because your current age, together with your retirement age are the crucial initial groundwork of an effective and efficient retirement strategy. In line with this, it is best to divide your retirement plan into several components. A good example would be being employed for “x” number of years, saving and paying for your child’s education, and retiring.
Reduce your debt
Seriously consider reducing your mortgage payments. This way, you can have your loan paid off before you retire. Along the way, restrict new credit card debt by using cash to pay major purchases. By limiting new debt and cutting paying off existing ones, you can seriously cut down the amount of retirement funds or income that you will spend on interest payments.
Consider future medical costs
Imagine you retire at age 60 or older. By that time, medical insurance will cover a vast majority of your routine healthcare expenses. However, you should consider having supplemental coverage to help address your non-routine healthcare expenditures. Which may rise as you grow older.
Furthermore, it is important to note that medical insurance usually does not cover long-term healthcare costs. For this reason, it is best to ask a retirement planning in Singapore on how you can prepare yourself for future healthcare expenses during retirement.
Plan your future residence
Your place of residence can eat up a huge chunk of your budget. That being said, you should consider selling your house in an affluent location and moving to a pad (or other similar residential facility) in a low-tax location. This way, you can free up income to pay for more important expenses.
Alternatively, you may consider staying in your city or town, but move to a smaller home that is easy to manage financially.
Summing up
These are only some of the most practical tips and pointers on how you can plan your retirement income. While this can help in a significant way, nothing beats the guidance that a highly-trained and experienced retirement planning in Singapore professional can give.
So, look for one that can help you plan your retirement and ensure that you have funds to live the life that you want in the future.
