Financial Planning:

Have you thought about your retirement?

Handy FAQS on retirement

You’ve worked hard for a long time and the kids have left the nest. Next on life’s agenda? Putting your feet up!

Some of you may have had one or two idyllic or whimsical thoughts about how you’ll spend your retired days; for others, it mightn’t have even crossed your mind. Yet it helps to take a practical approach to retirement – particularly about how you and your spouse can support yourself financially. Global life expectancy is rapidly rising, so you’ll want to be well prepared for your senior years, which might stretch well into your 90s. Perhaps there are particular hobbies you’d like to pursue that will require a particular financial commitment, and you’ll also want to be able to manage any health issues you face.

Here, ADAM DEANE, Senior Financial Planner at AAM Advisory, answers some of our readers’ questions about planning for retirement.

# 1 “What are the key things to think about when it comes to retirement?”

When discussing retirement, the picture will look different to every individual. There are many questions you’ll want to ask yourself. First, when and where will you retire, and what sort of lifestyle do you want to lead? Do you wish to spend retirement travelling? Do you have children or grandchildren living in another country? Are you going to be financially independent at the time you want to retire, with properties purchased and mortgages paid off? Will you still be supporting children or ageing parents? Will your current career path take you to another country and impact your planning?

Once you understand your retirement picture, look at any planning you already have in place, such as employer contributions, or a government state pension in your home country. And think about the amount you want to achieve for your particular retirement goals.

# 2 “When’s the best time to start planning for retirement?’

Quite simply, the sooner the better, as delays in planning can be costly. It may be hard to picture retirement when you’re in your 20s, 30s or 40s, but it’s important to review your planning to ensure that you’re on track and can accommodate life stages such as starting a family or purchasing property.

# 3 “What type of insurance should I look at when preparing for retirement?”

From a tax and portability standpoint, an investment- linked insurance plan can be very useful. Also, consider getting other plans alongside it, such as income protection, total permanent disability (TPD) and critical illness coverage. Disability insurance is another key part of a sound financial plan. It protects an individual with no dependants in the same way as those with them. There are a number of plans available in the market, some of which cover you both in Singapore and wherever you may move to next.