From estate planning and asset distribution to diversifying your investment portfolio and evaluating income sources, planning for retirement at least two years in advance is crucial to aid you in preserving your quality of life and easing the transition into a new chapter.
Set Profound Goals
As you prepare to ease out of the workforce, it’s quintessential to have a vision for how you want to spend the golden years of your life, so that you can identify how your expenses will change, how much money you need, and how best to manage your financial obligations. For instance, whether it’s spending on treatments and retreats for optimal health and well-being, investing in a community-friendly home proffering bespoke holistic amenities, or pursuing old hobbies and new interests, seniors need to ensure financial stability to support their future passion projects.
Determine Savings
The ideal way to get started is to save 15% of your gross earnings annually for your autumnal years when retirees need to keep up in a world that constantly leaps ahead without sacrificing tried and true values. A recent report shows that financial independence has become increasingly important for Malaysians wanting to retire early, with 71% saving regularly and 66% pursuing lucrative investments.
Factor in Costs
Considering factors such as your pre-retirement living standard, burn rate, inflation, and other expenses is crucial for assessing your readiness in terms of retirement savings. A single Malaysian retiree, for instance, requires at least 468,000 RM to cover their monthly post-retirement expenditures for fifteen years. If you’re looking for one of the premier senior citizen living communities in Bangsar proffering excellent value-added lifestyle amenities and customised care packages, venture no further than the likes of Domitys Bangsar Kuala Lumpur.
Forecast Spending
It’s also a good idea to take a serious look at your projected cash outflows without relying on assumptions in an ever-changing economic landscape. For instance, you may need more money for future endeavours like funding your kid’s higher education.
