At what age do you plan to retire from your job? Do you think you have enough money in the bank that will allow you to enjoy your retirement as early as possible? If you are not too keen on spending the next 20 to 30 years working at an office, then you should seriously start thinking about growing your retirement money as early as now. The last thing you want to happen is to realize that it is too late to save enough for your future because you only have less than 5 years before your retirement comes. This will force you to continue working even when you are in your 60s – and you certainly do not want that to happen.
But did you know that you have the power to choose your retirement age? This is something that no one can ever decide on but you, yet it purely depends on your bank account. Since your goal is to enjoy your old age and perhaps go on trips while having an endless source of cash for your basic needs, a roof over your head, and healthcare savings, then you must take action now to make these things happen.
Unfortunately, a recent survey was conducted by Nielsen, which revealed that 1 out of 3 working adults in Singapore are not even thinking about or planning for their retirement. This is indeed an alarming revelation since one’s retirement is a very important thing to prepare for aside from meeting day-to-day expenses. What’s more, there are those who simply curate a bunch of excuses and reasons to not save money for their future, which can be equally sad and disappointing.
So, if you are yet to grow your retirement funds, the following are big reasons to proceed to saving for the future to experience a more comfortable life in your old age.
1. Have more freedom in terms of your time and choices
Are you tired of having to wake up each day at a certain time, brave the daily commute to work, and think about what you need to do when you get home. Some people tend to get used to this setup, just accept the fact that they need to do it everyday, yet not take concrete steps on how to take themselves out of the daily grind. In a sense, they condition their mind that this is the only thing left for them to do, so they no longer think about the possibility of having a way out of it.
But the truth is, having the freedom to wake at your desired time and going to places without worrying about money is something that anyone dreams of. The world is vast and fascinating, and being confined in your cubicle at the office for decades and not performing actual steps to get out of that rhythm may lead to frustrations and stress on you in the long run. So, if you want to be free, start saving for your retirement to make it happen the soonest possible time.
2. Have a more reliable safety net for your future
While it is true that your CPF savings can give you some kind of an assurance that you will be able to continue enjoying the minimum standard living conditions in Singapore once you reach your old age or senior years, are you sure you want to just settle for that? Or would you rather retire in style and experience comfort as you travel, have extra money on your savings, and basically have a better standard of living than what you have now?
You see, there is nothing wrong with aspiring for a comfortable lifestyle. In fact, you must always aim for financial independence that can spare you from the stress of adopting a hand-to-mouth existence. Relying on the welfare system is not the best route to take for your retirement, so you should make an effort to start growing your retirement fund for a kind of life you deserve to have.
3. Attain security even when emergency expenses come your way
You probably have some savings in the bank, which you assume would be enough for your future. But then again, are these really sufficient in case unexpected circumstances come along and require you to shell out a certain amount to get through these? This is why your retirement fund must depend on your current situation whether you are single, or you are married with children.
People with a secure nest can make a huge difference in their well-being and confidence level. This will allow them to handle the tough financial situations that may hit them when they least expect them to come while sparing themselves from the need to take out a loan or work until they are in their old age. There are a few loans available if you ever need one and they are personal loan Singapore, payday loan Singapore, business loan Singapore and even foreigner loan Singapore. Understanding that there are some criterion needed to be hit if you intend to take up a credit loan from the banks, these licensed money lenders Singapore offer low income loan for low income earners.
4. Retain your present lifestyle
It is only typical for people to have their specific lifestyle. They may be the type who enjoy going to the theater once or twice a month, or they love to travel a lot. As for others, they just like to wine and dine at fancy restaurants, while others are more comfortable just staying at home and being with their loved ones.
At this point, reflect on your current lifestyle. Do you have certain habits that you want to maintain even when you have reached retirement? Or are you willing to let go of some of these because your savings may not be sufficient to cover all your needs and wants? If you are not looking forward to giving up your lifestyle, then you may have to think about your retirement funds. Calculate how much you might need to save, which would suffice for your basic needs. Then, set a realistic budget that works for you based on the lifestyle you have.
5. Address future or unforeseen medical conditions
As we get older, there are things we need to think about more seriously such as our health. This is why if you want to have a comfortable retirement period, then you should have some savings for your healthcare needs. The last thing you want is to be forced to take out a personal loan just to support your expenses for medical bills. You may also want to update your personal Medisave account, which can help you get by when emergency illnesses occur. What if you do not have enough money in your mediasave? As we are know that there are limited funds we can use and we do need to pay money upfront as well. Legal money lenders Singapore could be one of the alternative to pay off temporarily as they have this payday loan whereby you pay them back when you get your salary every month.
6. Gain benefits from compounded interest
Years before your retirement, you should think about generating extra money from compounded interest when you have a bulk of savings in the bank. You can reap higher interest rates on the principal deposit, which makes a huge difference than simply having a minimal amount of money in the bank. Also, the longer your money is invested, the higher the returns on your investment will be. These all add up to how much your retirement funds will amount to, so it is really the best time to begin saving for your future and take advantage of compounded interest.
Your retirement should be spent comfortably as this is the best gift you can give to yourself after years of working so hard. After all, no one dreams of working for the rest of their life and not having the freedom they deserve. This is why before you hit your 40s, you may want to work on growing your retirement funds that will make your future more exciting, much easier, and without a great amount of stress from having to give up the lifestyle you want.
With the tips we have presented to you, these should be strong reasons for you to prepare for your retirement as early as now. Then, you can just live each day with plenty of free time, more energy, and greater opportunities to explore and discover the beauty of the world.