4 tips for young adults to start planning for their retirement
When it comes to planning for your retirement, it is never too early to start!
Landing your first job, receiving your first pay cheque and moving into your own home for the first time will make you feel almost invincible. At this time, retirement planning is probably the last thing on your mind.
Yet, financial planning for your golden years should never come as an afterthought. Where you are now — starting your first job and saving part of your monthly pay — is the perfect place to start, ensuring your retirement years become the best years of your life! Here’s what you should be doing when you are in your 20s and 30s.
1. Start Saving Early
The strength of your financial protection depends on how much you save in the first place — the earlier you start accumulating, the more potential financial backup you have later in life. A savings insurance plan can help you with saving up for your key milestones in life. Whether it is for your upcoming home renovation, a new car or even for your children's future education.
2. Live Within Your Means
Do you really need the latest smartphone model when yours is working fine? Having disposable income does not mean that you can throw money away without a care in the world. Spending in moderation means less wastage and more emergency funds in times of need.
3. Stay Healthy
Even though the vast majority of Singaporeans have health insurance, our medical costs are still rising. According to a 2017 article in The Straits Times, private healthcare costs here are rising at 18 percent per annum. The best way to avoid hefty hospital bills is simple: lead a healthy lifestyle by eating a well-balanced diet, exercising regularly and getting enough sleep. Being healthy is the easiest, most cost-effective way to stay away from the doctor’s office. After all, health is wealth!
4. Ensuring Adequate Life Insurance
How much insurance is enough? Get some expert advice. Financial consultants will be able to help you establish your financial goals by going through a financial needs analysis. This way, you know exactly how much you need to save and how much disposable income you have for your living expenses at every stage of your life. Consider a retirement insurance savings plan so you can relax in your silver years, focusing on what matters the most to you.
Being financially prepared from a young age will give you a head start to living life to the fullest in whatever way you wish.
Make your retirement years count with the people who matter the most to you. After all, you are never too young or old to set another goal or achieve another dream. Learn how to be worry-free in your golden years.
The information in this article does not necessarily reflect the views of Prudential Assurance Company Singapore Pte. Ltd. Certain information in this article may be taken from external sources, which we consider reliable. We do not represent that this information is accurate or complete and should not be relied upon as such.
This article is for your information only and does not consider your specific investment objectives, financial situation or needs. We recommend that you seek advice from a Prudential Singapore Financial Consultant before making a commitment to purchase a policy.