Retirement planning is important. It doesn’t matter whether we start early or late. Maybe start early is better but you still need to plan for retirement even your age is almost 50s. Saving is important and don’t depend on the retirement fund such as EPF (in Malaysia) or pension. It ain’t enough in the future.
Retirement is not easy to plan especially for those have liabilities such as housing, son education, health issues and others. If we have enough saving, we can retire in proper way. Not worry about money in the retirement age and get the relaxing future.
As the topic above, I want to give the question that we need to know about basic retirement planning such as :-
- How much savings and assets we have now?
- What our monthly income?
- The percentage of income attributable to a retirement plan?
- How much of the desired return from our investment?
- How many years before we can generate retirement income?
You need to answer the question honestly. Do analyst your current asset and liabilities. Estimate the expenditure needs and adjust them to deal with inflation. Then decide if you want to retire – at age 45, 55, 60 or 65 years?
Make arrangements required income at retirement in accordance with the desired lifestyle. Retirement planning should include debt reduction, budgeting, investment diversification and health maintenance.
Health is important because it could be a big expense that can reduce our retirement savings. Although we have medical insurance and life insurance cover procedures and prescriptions are needed.
Sometimes certain diseases covered only half or indirectly protected by the insurance company.
Therefore, a complete retirement planning should be done by adopting a healthy lifestyle.
- We must have strategy for our future.
- Career planning is important for us to generate income
- Know how to paid our loan and tax
- Affordability is an important factor when buying a car and additional costs to own a car.
- Buying a house is a big decision. Consider whether you must buy or rent. (Read entry about pro and cons renting or buying a house )
- Need to discuss with your couple about financial matters.
- We are not old or young to plan for our retirement. So plan your retirement now.
That’s some basic tips for us to plan for our retirement age. If you have any additional information about retirement planning you can share at the comment below. Maybe it will help us to get a better retirement future.