Part 2: Funding Your Retirement
Welcome to Part 2 of the three-part series “Are You Ready for Retirement?”. If this is your first time reading this series, you may wish to read Part 1 first.
We talked about what retirement means to us and realise it is different for each of us. What retirement means to you affects how you go about funding it. Part 2 explores how you can fund your own retirement based on your goals and aspirations. Be warned! There will be some tough questions you have to ask yourself about how much you earn, how much you spend and how much you can save and invest. It is not fluffy-lovey-dovey I “think” I can retire but some cool calculations based on your own lifestyle and living standard.
Retirement Funding 101: Weighing Your Options
To retire means to set aside sums of money to provide for your projected living expenses when your paid employment stops. The reality of today’s world of rising inflation coupled with the inherent insecurity of jobs mean that this becomes even more challenging as we look forward to our own retirements. In simple language, “it’s gonna be tough, baby!”
You can tackle retirement funding two ways. The holistic approach would be to examine your lifestyle expenditure needs and project it into the future and then see how much you need.
I will first tackle it by looking at how much you can take out from the system taking the example of an employee who is earning a salary and has Central Provident Fund (CPF) contributions by his employer and his own which is typical for many of us salary-men and women in the Lion City. Read more…
Are You Ready for Retirement Series
Are You Ready for Retirement? [Part 1 of 3]