How to retire if you start planning in your 40s sample long title here where does it break testing
By Elena Owyong, 19 February 2019 193
In fact, 1 out of 3 Singaporean adults does not actively plan for their retirement, according to a 2016 survey conducted by Nielsen. Most of these people are bogged down by short-term and mid-term financial priorities such as their daily expenses, children’s education, paying for a property mortgage, as well as a lack of knowledge of when and how much to save.
While late retirement planning means that you lose out on the accumulated interest earlier on, there are still some ways to make your money work for you. We will show you how in this article.
Do the math
Calculate how much you need for retirement, based on your desired lifestyle and health status. Image credit:
Assuming that you are 40 years old now and that you want to retire at 67 years old, you still have 27 years to catch up. However, you need to know exactly how much to prepare for retirement.
The Central Provident Fund (CPF) has a that helps you determine the amount of savings you need based on your expected retirement age and lifestyle. Alternatively, you can also use Income’s retirement calculator.
While you are planning, think of your health status as well. This is an often-neglected consideration which will determine if you need to buy additional health policies to supplement your existing one.
Invest in financial products with lower risk
Financial products with lower risks help you to build up your nest egg for retirement. Image credit:
Given that your savings are insufficient, you need to increase them by investing in lower risk financial products that still provide reasonable returns, such as endowment plans.
An endowment plan is a type of insurance that provides basic insurance coverage, helps you to save over a specific period of time and possibly provide a lump sum benefit upon maturity of the policy.
Limited Pay RevoSave is an example of an endowment plan. It has a wide selection of policy terms and premium payment terms that allows you to save and enjoy guaranteed yearly cash benefits after 2 years while protecting you. It also provides guaranteed acceptance which means that your policy will be accepted regardless of your health condition.