Retirement Planning – Is Pension Enough?

3 main concerns that many retirees faces at retirement when they do not have good retirement planning:

  1. The pension fund that they have is not enough to last their entire retirement years
  2. Unable to replace their pre-retirement income during their retirement years
  3. Effect of inflation to their retirement fund

As a result, these retirees may:

  1. Be dependent on financial support either from their family or the government
  2. Outlive their pension savings
  3. Face with an increased cost of living

 

Retirement planning: Are you ready to retire?

  • Have you ever thought at what age do you intend to retire ?
  • At what age did you start working?
  • What is your current age?
  • How long more do you need to work before retirement planning?
  • How much money do you need to retire?
  • Do you have enough money to support you and your family at retirement?

 

How much you need to retire?

John intend to retire at age 60, started working since 23 years old and his current age is 40.

John has been working for 17 years. Since he intend to retire at age 60, that means, if you keep on working without missing, base on his entire earnings, he could have collected a total of 444 cheques till retirement. (Computation: Age 60-23=37 yrs working x 12 months = 444)

Out of 444 pay cheques, John has already received 204 cheques (Computation: Age 40-23=17 yrs working x 12 months = 204).

So there is a balance of 240 cheques left to be collected if John continue working till age 60.

Would you think that all of the 204 cheques have been put aside for retirement?

Assuming some or none?

 

How to retire?

Have you ever thought of which country would you like to retire?

Just imagine you are good planner and now that you are age 60 and you had a big party last night with lots of money to retire.

Can you feel the happiness that you can do the things you want to do and continue to enjoy the kind of lifestyle you want?

Think about it.

Tell me now,

  • How much money do you need to have this lifestyle?
  • What kind of income do you need to maintain this lifestyle?
  • Do you think your pension money can maintain your current lifestyle?
  • What are your current plans and provisions?
  • How much can you comfortably set aside each month?

Let me help you do the planning for your second pension fund.

 

Life cycle

Lets take a look at our life span. If I were to divide the entire life – span into 3 segments

  25%.                                     50%.                                  25%
Age 1-20.                                     Age 21 -60.                          Age 61-80& above

 

Age 0-20
When you are age 1-20 , everything is taken care off. Eg education, food, clothings, home, etc.

Age 21-60
When you are age 21 – age 60 you’ ll probably be working, get married & take in responsibility.

You have dreams & desire & goals you want to achieve them. E.g. to buy a nice car, nice home  and go for holidays.
Then you may start a family, send your children to the best university, and have a comfortable lifestyle.

Age 61 and above
When you reach age 60, you probably would retire.
Who will take care of you for the next 20 years ++ after you retire?

Would you like a maid to take care of you or
do you want to be a burden to your children, or
do you want to rely in friends, relatives or charity?

If you have a choice, which one would you select ?
Do your agree the only person who will take care of the older person you will someday be, is the younger person you are today!
I know of SOMEBODY who will actually take care of you and that is YOURSELF.

How to retire comfortably after retirement?

All you need to do is to start saving a little each month and we will ensure you will retire comfortably.

Pay yourself a salary during the years you re working for those years you are not working.
Pay yourself a small salary, we will help you to multiply your money so that we can pay you a higher salary when you retire,
we will give you continuous salary even after you have retired.

We are happy if you could share your plan for retirement.

Food for thought

How to get rebates from government through investment in PRS?

Have you prepared enough for rainy days?

Have you saved enough for your children’s future college education fund?

Are you using all your paycheck to pay for your mortgage loan?

 

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