This 3 questions might set you thinking!
- What is your retirement goals? (e.g. receiving monthly amount of $3,000 or more?)
- At what age do you want to retire?
- What kind of lifestyle do you want to live upon retirement?
The key is, do you have a plan in place for your golden years?
These are important questions when you plan for your retirement. Retirement planning is about understanding your retirement objective and putting in place a savings program so that upon reaching your desired retirement age, you will live the lifestyle that you desire.
The goal is to achieve financial independence upon your retirement age so that you can live the lifestyle you want without worrying about money.
Before you determine and proceed to plan for your retirement, you need to establish and think through a few points:
1. What is your desired retirement age?
2. What is the lifestyle that you want?
3. How much monthly income do you want to receive?
4. How long do you want your income to continue paying you till?
After establishing what you want, at your currentage, you need to decide how much are you willing to set aside to make sure that this retirement plan works for you when you reach the desired age?
reference : www.cpf.gov.sg
The figure, $1.37 million, sounds like a very huge figure, but it is going to happen when you reach that age. So start planning now!
Due to different lifestyle requirement, retirement planning requirement also differ with different individual. If you want your finances to last in order to support your lifestyle, you need to plan.
And if you plan to retire earlier than the average citizens, you need to plan even earlier ahead. More often, it is NOW.
Using the CPF retirement estimator, we can derive the following table on the amount needed if your current age is 30, 35,40.45, 50, 55, 60.
You have to start your planning way ahead and with proper financial planning, you will be able to achieve financial independence earlier and therefore, retire earlier.