5 Steps Towards A Safe & Secured Retirement

By - Eng Khoon
05.07.22 02:06 AM

It’s no big secret that we all want to live our best lives when we retire. After all, we work hard throughout our lives to provide the best to our loved ones and enjoy our retirement days with ease. However, once you retire, your monthly income would stop, and to sustain your daily expenses and live a dignified life, you will need a robust financial back-up.


This is where retirement planning comes in. Planning for your retirement is vital for having a safe, secure, and fun retirement and ensuring that you do not face any financial constraints. We recommend starting at a younger age to ensure that you and your loved ones do not face any financial burden when you are no longer earning. 

To do so, investing in retirement plans while you are young, motivated, and earning is one of the most recommended steps to take. Today, we’ll be sharing some of the key benefits of having a comprehensive retirement plan, and how you can work towards a safe and secure retirement. 


First, what is retirement planning? A retirement plan helps you plan today for a better tomorrow and ensure that you do not have to compromise on your and your family's goals and dreams even when you retire. It is recommended to start investing for retirement as early as you can, as it can help you save more for yourself and your family. 


A sound retirement plan allows you to:

i. Cover daily living expenses post-retirement

ii. Cover your medical expenses

iii. Tackle the rising inflation.

iv. Deal with uncertainties of life

v. Meet your retirement goal sooner than anticipated

Here are 5 steps to get you started on your retirement planning journey. 


1. Start Early 

Start investing in a retirement plan as early as you can. This is especially true when you’re young and able to earn. You have several years in your hand and the power of compounding with you. Investing from an early age will help you save a lump sum amount for your retirement days. As the cost of living and inflation rates rise day by day, having a solid investment plan in place will help you accumulate enough wealth for your retirement while you are earning sufficiently and offer assured benefits to your loved ones in case of your unfortunate demise.


2. Plan Your Retirement Age

Deciding the age at which you want to retire can help you plan better and more comprehensively. While the ideal retirement age for most people is 60, modern day workers have seen this age vary. Planning ahead for your your retirement age early is important because, beyond that point, your regular income would stop, and you would be more dependent upon your savings and investments. It also ensures that you and your loved ones will not face any financial burdens and how much money you can withdraw for expenses after you retire. 


3. Calculate The Amount You’ll Need For Retirement

Planning the financial requirements & goals of your family and yourself is helpful, as it ensures that you do not have to face any financial constraints at a later stage or when your retirement is near. Your retirement fund should be the amount you would require after your retirement to sustain the same lifestyle and pursue your post-retirement goals. Having a well-planned financial portfolio for your retirement ensures that you can enjoy your retirement with your loved ones in a hassle-free and seamless way. 


 4. Calculate the Future Value of Your Current Savings

You need to find how much you are able to save each year after meeting all your expenses. Once you’ve worked out your retirement income needs, you can work out if you have adequate income sources to fund the retirement you want. You can keep aside a part of your savings towards your retirement plan. Do bear in mind that the value of money you save today will be far less ten years down the line. If you’re planning years in advance, look at your current sources of income and assets and how you predict they may be when you retire. This can include any personal savings, pensions pots, investment portfolios and home equity, while also considering factors such as the expected rate of return on your investments and inflation.


5. Have Some Contingency Plans In Place

When we plan for retirement, it can be easy to plan for the things that are guaranteed but it is equally important to create a contingency fund to ensure that unplanned expenditures don’t burn through your retirement fund. Even though you can’t predict what’s going to happen, it is important to put some money aside for unexpected expenses, such as medical emergencies or any unforeseen circumstances. 

Planning your retirement early will allow you to live a financially independent life after your retirement. A reliable retirement plan today can help you live comfortably and worry-free after retirement. You can seek the help of a professional planner to create a diversified portfolio for you. Apart from retirement plans, you can also invest in other assets to ensure all your eggs aren’t put in a single basket.


At SK i-Wealth, we offer a full financial service solution for individuals and companies, including retirement planning services. Our firm’s comprehensive wealth platform and experience supports a team of Financial Integrators with the resources they need to deliver integrated financial solutions according to your needs. 


Discover more about us at https://www.skiwealth.com/