Someone once said “Don’t wait until you’re 45 to do what you want to do at 25”. The discussion involved working at something you love or taking part in some activity that you are passionate about. With some slight changes in wording, this advice can be applied to planning for retirement. Don’t wait until it’s too late to start planning for a comfortable retirement.
In fact, if you start early and take the right path, the life that you always dreamed of could be there for you at age 60 and beyond. At one point, people felt as if they were approaching the later years of their lives when they were in their 40s. Today, people remain healthy and enjoy activity well into their 60s, 70s, and 80s. That makes it even more important to put plans in motion now so the funds are there when you have time to enjoy them.
If you make a few wise decisions early in life with valuable advice from professionals who understand what needs to be done, you could be prepared to start a new business, change homes, or go to college when you’re 60. Not only is life expectancy increasing but the possibilities are growing as well. People in their 50s and 60s are taking new steps, first steps, that would have been unthinkable just a couple of decades ago.
In addition to increased opportunities because of lifespan and health, the possibilities for living, working, and relaxing in other locations are growing. A young adult should start retirement investment in Singapore now. This is certainly one of the areas in which it is never too early to start planning. Even if it’s difficult to save for long-term financial security, anything that you can do immediately can have a significant impact on your retirement income.
For example, you can start a regular investment plan for retirement years by simply designating a portion of your regular income for this purpose. Put something aside every month to expand the options that you’ll have 20, 30, 40 years from now. Even if this is all you do, you’ll be making better plans than thousands of others. However, you’d also benefit from working with professionals who understand how to put together solid retirement plans.
Begin your plan by identifying goals for the years before retirement and for your retirement years. Set those goals by putting them in writing. This plan should include an honest estimate for the length of your retirement. You should also determine a net worth amount, how much you’ll need for expenses in retirement, and how much income you’ll have for retirement.
If you would feel more comfortable sharing this process with someone, you should work with a retirement and finance professional who can ask the right questions and help you come up with the right answers. As you go through the planning process, you should always factor in inflation and be prepared to honestly evaluate your plan, revising as necessary. Talk with an expert about various funds and accounts to help you keep your plan on track.