​What is retirement?
Retirement is a chance to decide on whether to work. Yes, the early you start planning about retirement, the better your position in making the right decision about your retirement. Some of the indicators that it's the right time to begin Investing for a retirement plan include but are not limited to:
- You have a permanent home (of course, a fully paid home)
- You're free from any debt obligation.
- You have a comprehensive health insurance coverall catering your medical expenses.
- Have a reliable passive income or enough savings to cater to a retirement lifestyle.
​Why is it important to plan for retirement, and when should you start?
Indeed, the future is uncertain, and only Allah knows what the future holds for us. For instance, job changes are widespread, and usually, these changes might affect an individual's career path and earning potentials. Besides, medical emergencies can disrupt our working abilities, which can drag us into a debt trap. The ever-rising inflation also means that you've to set aside a more considerable sum that is expected to cater for a comfortable retirement. Indeed, a wise person must adequately plan for such uncertainty.
One of the most critical steps you take towards achieving financial freedom in the uncertain future is a strategy that can help you take care of yourself without necessarily depending on the financial support from well-wishers, friends, and family members.
Rest assured, you'll be more confident and have a sense of self financial independence as you near the post-work life age. The most effective strategy to achieve those goals is to start investing early for uncertain future needs.
One of the most critical steps you take towards achieving financial freedom in the uncertain future is a strategy that can help you take care of yourself without necessarily depending on the financial support from well-wishers, friends, and family members.
Rest assured, you'll be more confident and have a sense of self financial independence as you near the post-work life age. The most effective strategy to achieve those goals is to start investing early for uncertain future needs.
When is the best time to start investing for your retirement?
Although many people in Singapore and the entire world consider retirement as a short-term event and not urgent enough to start investing in it right away, such a mindset can only hinder the potential of financing for a timely retirement. It's far much better to start saving a tiny amount than not saving at all. With time, the little saving accumulates into excellent wealth preservation.
Some of the reasons why many people end up failing at implementing a comfortable retirement are self-doubting. For instance;
Some of the reasons why many people end up failing at implementing a comfortable retirement are self-doubting. For instance;
- How much should I invest for it to be enough?
- What will happen if I exhaust my savings while still alive?
- With the ever-increasing inflation, will my accumulated retirement funds be enough to finance my desired lifestyle?
Why does it pay to start early?
Although not starting early doesn't mean that you can't still invest adequately, but certainly creating earlier is more encouraging. This is because starting earlier gives your savings more time to benefit from the power of compounding returns. The longer you delay starting, the less time your saving will have to grow and reach your ideal retirement goals.
Example.
Juliet and Nicholas started saving $ 250 and $ 400, respectively, per month. Juliet started 30 years ago while Nicholas started 20 years ago. Assuming that the investment grew at 4% per year:
Juliet total savings are:
$300 * 12 *30= $90,000
Present value for her money = $174,000
Nicholas total savings are $400* 12* 20=$96,000
Present value for his saving= $147,198
This example clearly illustrates that although Juliet has been saving as little as $250 per month, her present value exceeded Nicholas simply because she started saving earlier.
Example.
Juliet and Nicholas started saving $ 250 and $ 400, respectively, per month. Juliet started 30 years ago while Nicholas started 20 years ago. Assuming that the investment grew at 4% per year:
Juliet total savings are:
$300 * 12 *30= $90,000
Present value for her money = $174,000
Nicholas total savings are $400* 12* 20=$96,000
Present value for his saving= $147,198
This example clearly illustrates that although Juliet has been saving as little as $250 per month, her present value exceeded Nicholas simply because she started saving earlier.
How much do you need to retire in Singapore?
Are you aware that Singapore is among the most expensive cities to live in today? Indeed, many Singaporeans are already feeling this economic heat in their pockets, especially that the cost of living is taking up a considerable part of their earnings. Yes, some Singaporeans are wondering if it is possible to retire with a sizeable retirement. Keeping in mind that Singapore is more likely to maintain at the top, what does this imply for you? The implication is that you must develop a clear strategy and plans to do it in advance before the cost of living hikes beyond your expectations.
The good news is that our retirement calculator can help you determine the most appropriate retirement savings for your future. Our retirement calculator is designed to make investing for retirement plans in Singapore relatively easy so that most people can make informed and the right saving decisions. For instance, many Singaporeans look forward to retiring at the age of 55 and finally officially retire fully at the age of 62. So, how much is enough to save to retire at 55 years comfortably. As mentioned earlier, our retirement calculator will help you predict the most appropriate amount you need to commit to sustaining your desired lifestyle after retirement.
What specific actions should I take at each stage of my career?
The secret to having a considerable retirement amount is saving as much money as possible and starting as early as possible. For instance, if you've been working for quite some time and saving just a small percentage of your income, you can consider setting a supplementary retirement plan scheme. The scheme is usually voluntary and offered by the Singapore government. Both the PRs and Singaporeans can contribute an amount not exceeding $15,300 annually into your saving plan.
Besides, it's imperative to fully understand and analyze your risk tolerance and spending patterns since these two factors can significantly influence your saving habits and your investment strategies. Don't underestimate the power of starting to save early in your life. This is because your liabilities are pretty few, which increases your opportunity to invest even a small amount in laying a concrete foundation for your future retirement portfolio.
Building a retirement plan.
The importance of building a retirement plan is that it helps you live your present life to the fullest and that in the future. A wise retirement plan balances the present life and the future to make your entire life worth living. We are glad to help our clients come up with informed retirement decisions.
Building retirement savings the Muslim way.
According to Muslim beliefs, one should not save to steer investment that promotes forbidden services and goods such as alcohol, pork products, immoral entertainment, and tobacco, among others. Halal retirement savings are based on Islamic saving guidelines. Besides, investments are not allowed in companies with negative leveraging power. However, investing in companies offering at least 5% or more minor is permitted. Investing in convectional insurances and banking is also haram since these institutions pay interests (riba). According to Muslims, the dividends earned should instead be donated to charity.
The good news is that our retirement calculator can help you determine the most appropriate retirement savings for your future. Our retirement calculator is designed to make investing for retirement plans in Singapore relatively easy so that most people can make informed and the right saving decisions. For instance, many Singaporeans look forward to retiring at the age of 55 and finally officially retire fully at the age of 62. So, how much is enough to save to retire at 55 years comfortably. As mentioned earlier, our retirement calculator will help you predict the most appropriate amount you need to commit to sustaining your desired lifestyle after retirement.
What specific actions should I take at each stage of my career?
The secret to having a considerable retirement amount is saving as much money as possible and starting as early as possible. For instance, if you've been working for quite some time and saving just a small percentage of your income, you can consider setting a supplementary retirement plan scheme. The scheme is usually voluntary and offered by the Singapore government. Both the PRs and Singaporeans can contribute an amount not exceeding $15,300 annually into your saving plan.
Besides, it's imperative to fully understand and analyze your risk tolerance and spending patterns since these two factors can significantly influence your saving habits and your investment strategies. Don't underestimate the power of starting to save early in your life. This is because your liabilities are pretty few, which increases your opportunity to invest even a small amount in laying a concrete foundation for your future retirement portfolio.
Building a retirement plan.
The importance of building a retirement plan is that it helps you live your present life to the fullest and that in the future. A wise retirement plan balances the present life and the future to make your entire life worth living. We are glad to help our clients come up with informed retirement decisions.
Building retirement savings the Muslim way.
According to Muslim beliefs, one should not save to steer investment that promotes forbidden services and goods such as alcohol, pork products, immoral entertainment, and tobacco, among others. Halal retirement savings are based on Islamic saving guidelines. Besides, investments are not allowed in companies with negative leveraging power. However, investing in companies offering at least 5% or more minor is permitted. Investing in convectional insurances and banking is also haram since these institutions pay interests (riba). According to Muslims, the dividends earned should instead be donated to charity.