3 Ways to Jumpstart Your Retirement Plans in 2021

Retirement is a goal that all professionals find themselves striving towards each and every year. Some envision their later years spent traveling abroad, others hope to spend more time with their families at home. But regardless of how you intend to spend your time in retirement, there are some very important steps you must take to ensure you won’t be working long after you’re ready to be done. And with the new year quickly approaching, 2021 might be the best time for you to truly take control of your retirement dreams and begin working towards them in concrete ways.
Prepare for the Future Cost of Living and Expenses (MoneySense 2018)

No matter what the cost of living is currently, you can bet that it will increase over time as inflation rates are a natural occurrence nearly everywhere. In order to prepare for those increased costs, it’s helpful to start saving early, so you can reap the benefits of compounding returns. Speak with a financial advisor to see where you can currently cut your spending and discuss investment strategies you can consider to grow your money over time.

Leverage Passive Income for Savings and Investments (SingSaver 2019)

After you’ve set aside a decent emergency fund for 2021, it may be time to consider new ways to accrue passive income. This can be via odd jobs, selling second-hand items, or purchase high dividend stocks. Once you have that passive income, it’s time to decide if you would like to invest or save it. This allows you to continue living on your regular income, while still building a significant savings account based off of additional income that varies from month to month.

Understand Your Insurance Options Well in Advance (Manulife 2019)

Currently, the minimum retirement age in Singapore is 62 years old, meaning it is against the law for an organization to ask it's employees to enter retirement earlier than that age, although the employee is free to retire whenever he or she chooses (AsiaOne 2019).

Still, there’s no need to wait to get educated about what insurance and protection plans are available to you at every age. As we age, it is more likely that we will experience poor health conditions naturally, and this can take away from enjoying our retirement and also place a financial burden on ourselves or our loved ones. That’s why it’s important to ensure you have the right insurance coverage in place so you can protect yourself against potential expensive medical and care expenses.

2021 is the year to begin planning for the future – with some easy goals set each month, and an understanding of what you will need to be prepared for as retirement approaches, you will find greater peace of mind in knowing that there is a new stage of your life ahead. After years of dedicating your life to your career, there is an end to that journey in sight – and it can be the best part of your life if you’re ready for it!

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Content Sources
Manulife (June 2019), 6 retirement planning mistakes to avoid, retrieved from Manulife
MoneySense (October 2018), Introduction to planning for retirement, retrieved from MoneySense
Ong, Ryan (August 2019), What’s the ‘correct’ retirement age in Singapore?, retrieved from AsiaOne
SingSaver (June 2019), How Much Do You Need To Retire in Singapore, retrieved from SingSaver