What will your retirement look like?
Many of us avoid thinking about retirement as it can fill us with anxiety and a number of worries: Will I run out of money, get bored, or lose status now that I’m not working? Have I left it till too late? These questions can seem daunting, so we end up just putting everything to the back of our minds.
However, retirement is a non-negotiable end-goal, and when the time comes, whether you are ready or otherwise, you would need to retire.
So how do you take the first step towards planning your retirement? It’s not easy if you don’t know what you want, how much you’ll need, or what life will be like in a few decades’ time. (Goodbye driverless cars; hello teleportation!) On a more serious note, not taking the first step—or taking it too late—is a big reason why some people run into money issues later in life when they realise they don’t have enough to sustain them.
See your future, so you can work on it today
A gentle prod in the right direction might be to first imagine how your retirement days could look like, based on your current lifestyle.
DBS FutureMe is a personalised retirement planning tool that helps you visualise your desired retirement lifestyle. Based on your expenditure over the last six months, broken down by categories such as travel, dining, household expenses, and more, you can tweak the figures to project your likely expenditure (including inflation) in the future.
With a better understanding of how much you are currently spending, saving, and investing, it will be easier for you to take that critical first step towards preparing for your retirement.
Planning more than just your finances
Once you’ve covered the first step of visualising your future, here are a few things you can start with now that could help you reach your retirement goals:
|What you want||What to do now|
|A cosier living space. The house that I have now is shared with my children. In my golden years, I won’t need such a big place.||Plan on renting out spare rooms or downsizing to a smaller home. Releasing equity from your property assets can help fund your retirement.|
|Do good. I hope to give back to the community through my time and skills.||Start volunteering some of your time to your chosen cause now. More importantly, grow a good heart.|
|Travel the world. Discover the places I never got to visit.||Keep a healthy lifestyle and mind. An active lifestyle is not cultivated over several months, but to be maintained over a lifetime.|
As the saying goes, time waits for no man. Before you can fully prepare for it, the future would have dawned on you. What you do now—whether action or inaction—will ultimately affect your retirement.
FutureMe is available to DBS/POSB Internet banking users.