Manage Finances for Retirement | Prepare for Post Retirement Life Singapore

Budgeting

When it comes to retirement, most of us appear to worry about it! On the one hand, we excitedly await the day when we can finally escape the daily grind, fantasizing about all the wishful vacations we wanted to take. And on the other hand, we continue to do little to make this fantasy a reality. Dreams without action and a strategy are just that: fantasies. We require a new paradigm for contemplating retirement. So in this blog, we tell you how to manage finances for retirement to help you retire properly and enjoy your golden years to the fullest.

How to Manage Finances for Retirement?

Chalk Out Your Retirement Objectives

We’ve all heard the suggestion to “start saving for retirement early,” but it’s merely a starting point, not the entire answer. It merely advises us “when” to start thinking about retirement… but not the what, where, how, or (most crucially) how much? It’s time to undertake some soul-searching to fill in the spaces. What are your retirement objectives? What kind of retirement lifestyle do you want?

Being realistic about your intended retirement lifestyle will help you determine how much money you’ll need to fund it. The more we desire in retirement, the more we have to pay. So, rethink your retirement goals in terms of sustainability. Your retirement goal should strike a good balance between being a desirable lifestyle and not being so expensive that you burn out trying to support it.

Stick to the Plan 

Saving for retirement and planning for it is a marathon. That is why it is critical to be resilient and keep your sights on the target. Why is resilience important? Because unexpected events are nearly always going to put you off the path. Saving for retirement is a long-term effort that might take years, if not decades. During this time, there’s a 99.9% probability that life will throw a curveball and derail even the best-laid retirement plans. Resilience is the ability to remain the course in the face of adversity.

You can further deflect this curveball by having other financial safety nets in place, such as an emergency fund (about 6 months of living expenses) set aside for rainy days and the necessary insurance plans in place to protect your hard-earned savings and keep you on track with your retirement plans.

Make Wise Financial Decisions

You wouldn’t buy a property on the spur of the moment, would you? After all, we’re talking about a six- or seven-figure sum here! Committing without first evaluating your options is a bad decision. The same may be said for retirement planning. Although it does not require a large sum of money, such as purchasing a house (you can actually start with tiny regular sums and roll over to a greater amount with time and compound interest), it is similar to constructing a safe haven for our future.

Indeed, something so significant (with our future pleasure at stake) should not be done half-heartedly or casually. Instead, before committing to a plan, we should thoroughly examine and analyze our requirements.

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