In a time where our youths are more financial savvy than ever before, it’s never too early to start saving for retirement. While no one can say for sure how their retirement life will look like, you will need to make your plans based on an estimated monthly amount. This amount depends on factors that include the type of lifestyle you desire, inflation, and more.
In this guide, you can find out more about how you can reach your retirement goals by creating multiple income sources.
The Retirement Sum You Need
According to insights glimpsed by the Household Expenditure Survey (HES) every 5 years, the average expenditure of an individual in 2017/18 is $1,628 monthly. If you are someone who is currently working, surviving on this sum may seem unthinkable to you. However, it’s important to keep in mind that most of the financial responsibilities you currently have would be cleared by the time you reach retirement, whether that’s your mortgage or your children’s education.
Of course, the type of lifestyle you have in mind will also make a difference to the monthly sum you will need. If you intend to travel a few times a year, naturally you will require more savings than a retiree who is content with just ensuring his basic needs are met.
Creating Multiple Sources of Income
With the rising rate of inflation today, many of us know that it may no longer be enough to rely on just the income from our day job. This is especially true if you wish to have children or retire early.
Thankfully, there are multiple sources of income you can tap on in your retirement years besides your own savings. One that may immediately come to mind is your CPF payouts. Discover the different types of income you can leverage here:
What Does a Meaningful Retirement Mean to You?
Just like with everything else, what constitutes a meaningful retirement life will be diferent to everyone. You may be content staying close to home where you can be a part of your grandchildren’s lives, or you may wish to (finally) tick off all the items on your travel bucket list. To determine how much you will need for the retirement life of your dreams, be realistic about your expectations and don’t be afraid to start young!
Talk to your Financial Consultant if you’d like to discuss about this article and gain different perspectives.
This article is for informational purposes only and should not be relied upon as financial advice.
General Advice Disclaimer
The information in this publication or any dissemination of information in any form is not intended to be and does not constitute financial advice, insurance advice or any other advice or recommendation of any sort offered or endorsed by finexis advisory Pte Ltd (“finexis”).
The information is not to be relied on as investment, legal, tax or other advice as it does not take into account the investment objectives, financial situation or particular needs of any specific investor.
Investment products are subject to investment risks including the possible loss of the principal amount invested. References may be made to past performance of investment products and it may not be indicative of future results. Buying insurance policy or investment product may require long-term commitment. An early termination of the policy or product usually involves high costs and the surrender value payable may be less than the total amount paid. Please refer to the relevant documents such as product summary or policy contract for the exact benefits and features.
If you need clarification, please do not hesitate to ask your financial consultant. You should not make any decision based on the information without undertaking independent due diligence and consultation with your financial consultant.
The information provided and / or this advertisement has not been reviewed by the Monetary Authority of Singapore.
Full disclaimer: https://www.finexis.com.sg/general-disclaimer.html