DBS Wealth Feed > 3 stages of retirement
Hitting the right notes at every stage of retirement
February 02, 2018
Everyone wants to enjoy their retirement. And with good financial planning, you can find fulfilment by pursuing all that you want. Here are some ideas to help you come up tops during retirement.
With the desired age of retirement hovering at 61 years old and only 19% of Singaporeans being aware of how much it costs to stop working at that age, it is more pressing than ever to learn how to build up a steady flow of funds1.
At present, Singaporeans live to an average of 80.6 years for men and 85.1 years for women2. While this means you have more time to make the most of your retirement, it also means that your funds need to last longer.
Having the foresight to understand how your financial needs will vary across your retirement years helps you make wiser decisions in building your funds.
Here’s a ‘playlist’ reflecting the pace across the 3 stages of retirement:
You’re in your mid-60s and just beginning to embrace retirement. The kids are doing well, your mortgage is paid up, and your alarm clock is set permanently to ‘off’. This is your time to do what you’ve always wanted – see the world, learn a new skill, indulge in a hobby.
Since you’re not drawing a regular salary any more, you’ll be relying on other sources of income. So it’s essential to make sure you have enough to continue living it up. If you’d like to estimate the income you’ll need in retirement, tap on DBS FutureMe to determine your retirement lifestyle and start planning today.
Here’s an illustration of how Universal Life can help you:
As these policies are highly customised, a financial planner can best advise you on setting up one that meets your needs.
It’s about a decade into your retirement and you are comfortably enjoying your 70s. You’re happy to take your foot off the pedal, and cruise a little... travel less, play less golf... but now you have more quality time with family and friends. Your needs are a little simpler, although no less comfortable. Some concerns, like healthcare, might come up. Fortunately, you have a little more flexibility with your assets.
In your 80s, you are learning to treasure what truly matters in life. The grandkids are growing up fast, and by now it’s mostly about spending time with family and friends. Your ultimate contentment now comes from having your family around you.
They support you by ensuring you get help with the things you used to do around the house, including laundry and general cleaning. And it’s good to know there’s someone to accompany you to doctor’s appointments and remind you about your medication, help that you’ve graciously come to accept.
Inflation, however, is not your friend. But planning well has given you enough for what you want to do.
You’ve heard this often, and it’s true: The earlier you start planning and investing, the better. Starting at 35 or even 25 gives you 30 to 40 years to grow your investments and take advantage of the value of compounding interest. At the same time, you’re more likely to ride out market volatility.
But don’t fret if you haven’t started – it is never too late. There are always solutions to allocate your finances across different investment streams so that you can get closer to the amount you desire to retire with.
Plan ahead to meet your retirement objectives with greater ease.
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