Why you’re finding it hard to build up that nest egg
Saving enough money for retirement is challenging, even if you have a clearly defined plan. What's disturbing is that most people don't even have that much going for them. This causes many to underestimate certain retirement costs and overlook others altogether.
Here are five commonly ignored costs that could take a sizable chunk out of your retirement savings if you're not prepared for them:
- Healthcare - Healthcare is a tricky thing to plan for in retirement because there's no way of knowing how your health will be as you age.
- Fees - Every retirement account charges fees to cover recordkeeping, account rollovers, and other services.
- Debt - It's best to enter retirement debt-free if you can.
- Taxes - You will still owe taxes in retirement unless all your savings are in Roth accounts.
- Your kids - Many parents today help their children pay for their college education so they don't have to take out as much in student loans.
Don’t take pity on me
I don’t want pity. Pity is more painful than many other emotions that can be placed upon you, more than hostility, awe, envy, fear and repulsion.
Retirement? Singaporeans work long hours to try to afford retirement, but for many, this is just a dream, and some are even working in their twilight years. Singaporeans’ long-term saving plans are being jeopardized by inflation hovering near the highest level in more than a decade, insufficient wage growth, accelerating housing costs and other financial burdens from living in a city recently listed as the world’s most expensive alongside New York. The result is nearly 60% of Singaporeans say they are not on track with their retirement plans, according to a report by Oversea-Chinese Banking Corp. in November.
There are several reasons why some Singaporeans may be unable to retire:
- Singapore is known for its high cost of living, which can make it difficult for retirees to make ends meet.
- Inadequate retirement savings: Many Singaporeans may not have saved enough for retirement due to a variety of reasons, such as a lack of financial planning, low income, or financial setbacks.
- Longer life expectancy: Singaporeans are living longer, which means they need more savings to support themselves in retirement.
- Inability to find work: Some Singaporeans may be unable to find work in their later years due to age discrimination or health issues, making it difficult to supplement their retirement income.
- Family responsibilities: Some Singaporeans may have to support their children or elderly parents financially, which can put a strain on their retirement savings.
Everything You Need to Know About Retirement
Retirement Planning: How to Map Out Your Financial Success
If even thinking about retirement planning makes you nervous or puts you to sleep, you are not alone. What does retirement planning even mean?
Retirement planning is a broad term that refers to learning about and choosing financial strategies that will enable you to be comfortable and secure in your retirement years. A good retirement plan, executed smartly, can provide you with enough money to cover all of your later-year living expenses.
Let's explore the importance of retirement planning and examine the steps you need to take to prepare for your golden years:
- Why should you plan for retirement?
- What to consider when planning for retirement
- How much money do you really need to retire?
- How to save and invest for retirement
- How much money should you save for retirement each month?
- Types of retirement plans
- Tax advantages in retirement
- Using your home to boost your retirement income
- Start your retirement planning today
