You hear 62 or 65 are often ages that many people retire. However, it might not be for you. For some, it might be that you are looking for something a little more manageable and don’t want to work as late; for others, you want to retire early and enjoy your retirement, and travel, as much as you can. But, what you want might not be a reality. There are a few things you have to consider, and your age is one of those when you are deciding on your retirement plans. Consider these things as you are mapping out your retirement.
It’s not a fixed number
Again, just because your parents retired at 65 doesn’t mean you have to. Do not set a date or specific age, but rather set your retirement planning around what you want out of retirement. If you want to have more set aside in your CPF funds, you will work longer, or choose other retirement vehicles to set up. Consider all viable options, and make sure you know that you do not have to choose a specific number, or retire by a certain age, just because this is the ‘norm’ or what most people have done before you. Consider your options, weigh them, and know what you are going to do when you do retire, to ensure you can take care of yourself and your family.
How much you make
Base retirement on your earnings. Not a fixed or sliding scale, or arbitrary numbers. You have to look for viable ways in which you can grow and make sure you will have sufficient funds set aside for when the time comes for you to retire. So, you need to know what you are worth, what you are earning, and other relevant information, in order to ensure you will have the funds you need set aside when the time comes for you to retire. You have to live within your means, and this means you have to base your retirement planning around the amount of money which you are currently earning. This is the only way to ensure you can properly plan for what is going to follow when you are no longer working.
Your desired lifestyle
You can’t retire like your parents. If you love to travel, how are you going to do so if you don’t make enough now, and can’t save enough when you are ready to retire. Further, there are a number of things that come along with retirement, which are not covered by retirement accounts. So, your incidentals, food, and other expenses are not going to be allocated to your retirement planning. Understanding what you want to do, how you want to live, the lavish or luxuries you want to enjoy, and so forth, are a few of the many things you should account for, as you are budgeting and planning for your retirement when the time comes. You have to know what you are worth, what you enjoy, how much you like to spend, and so forth. This is the only way for you to really start to save enough, and ensure you are going to have the things you need when you are ready to retire (and to take care of your family as well).
For some, you have no choice but to stop. An injury, illness, or other factors can come into place which is going to force you to retire. In such cases, you have to consider government routes and different ways in which you can further set up retirement accounts. Knowing what you have, what you are going to need, and the amount you are going to receive from alternate sources, is a great way for you to begin to plan early, and for you to ensure you are going to have enough to take care of yourself, when the time comes for you to stop working. Whether or not it is a choice, when you do have to stop working, you need to be certain you have enough set aside; these are a few of the many things you should be planning for, even though you don’t want them to happen, as you are planning for your impending retirement. If in any case, there isn’t enough emergency funds, you may want to think about going to a recognised financial company such as Credit Hub Capital Singapore.
Health and stability
You are living longer; in fact, most people are. So, as many people are living nearly a decade longer than they were only about 50 to 100 years ago, you have to account for this extended period of time. You have to make sure you are going to have enough money to take care of yourself as you get older. And, if you are a very healthy individual that does take care of yourself, who knows how long you are going to stick around after you do decide it is time for you to retire. Don’t you want to know you are going to have the funds you need, for as long as you are living (and can enjoy the life you are living), to take care of yourself? Of course, you do. Everyone does. So, this is another factor you are going to have to take into account, when the time comes for you to begin the planning process, and when you are looking for ways in which you can set up the proper retirement funds and accounts, so that you can start to save and to plan for your future.
You know that it is something you are eventually going to go through, so why not begin to plan for it as soon as you possibly can? The earlier you do so, and begin to save, the more you are going to be able to put aside. And, in this, you are going to have the funds you need to take care of the family and enjoy yourself. Don’t simply retire because you ‘have to.” Rather, plan things out, know the options you have and account for these factors as you are doing your financial planning, and preparing for the time when you are ready to stop working.