Retirement pitfalls to avoid
When it comes to planning for retirement, there are a few pitfalls you will come across. We have listed some common ones to avoid; but with a solid plan in place, careful preparation and the sound advice of a financial advisor, you can side step these problems.
Not talking to a specialist about your retirement plan.
Our Relationship Managers provide a fresh pair of eyes and subject matter expertise essential to help you meet your desired retirement goals.
More importantly, he/she is able to identify retirement pitfalls early and design a customized road map on how to help you acheive your retirement dream.
Not having enough savings.
Cashflow management, or making sure that you are not spending more than you ought to, is essential charting up plans for the future.
You should aim to save and invest at least 20%-30% of our monthly income - savings to provide the certainty and investment gains to provide the needed "extra boost" to enhance your retirement savings.
Starting your planning too late.
Unrealistic expectations for retirement.
The better the lifestyle you want, the higher the retirement income you need, and hence, the more you need to save during your pre-retirement days! But be mindful not to have a retirement that is out of your reach because you can lose the motivation and instead be discouraged and give up. Set realistic expectations and always be prepared to be flexible to adjust your expectations.
Our FutureMe tool can provide you with a glimpse of how much you need to save in order to meet your retirement - then let us show you how.
Paying off debt before saving.
Don’t wait till your debt is cleared before you start saving; find a comfortable zone to pay debt and save at the same time.
No formal retirement plan.
You can get help from a specialist to help you formalize a retirement plan and work towards it! He or she will be able to provide a structured approach for you to realize that plan of yours.
Not to forget - don't sit on a plan; act on it!
No idea how much to save
Use the FutureMe tool to determine the amount of retirement fund you will need and how much exactly you should save till retirement!
Underestimating your health / longevity and overestimating your affordability.
We are living longer while cost of healthcare is increasing. Hence, hedging against healthcare costs is part of planning for your retirement which is critical. Make sure you have adequate hospitalisation and medical insurance.
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Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.
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