Can You Afford to Retire?
With uncertainty shaping the current global economy, it’s hard to see where we will be in a few months, let alone a year. Are you nearing the “CPF age” of 55? Do you have enough to retire on for the next 10 to 20 years, without worrying about your next paycheck?
Singapore might be known as the rich nation that cannot afford to retire. But that does not mean that the Golden Years can’t be the best years of your life. Here’s how to work towards financial freedom by the time retirement aspirations start creeping up on you.
Define Your Retirement Goals
The first step in retirement planning is to ask yourself when and how you would like to retire. Then, work out how much you will need to retire with in order to enjoy that dream lifestyle. Is your retirement dream to spend more time with your grandkids? Are you happy surviving on $400 per month, or are you more comfortable with $1,500? If it’s the latter, you will want a non-strenuous job that offers a steady income: like driving for Grab.
Living much longer than our parents before us is now expected. So it’s important to project the number of years you would expect your savings to last you to avoid outliving your retirement funds!
Check Your Savings Plan
Now that you’ve got a retirement plan, it’s time to work out how much you can expect to have when you retire. According to a survey, the average monthly expenses post-retirement adds up to $1,200. Assess your savings account, CPF savings, investments and insurance policies and add them up. Do you have enough to pay off outstanding loans and retire without worry in your golden years?
If you don’t, re-think ways that you might be able to increase your retirement fund. Alternatively, you can scale back on your retirement dreams.
Stretch Your Retirement Funds
But the reality is, after working for most of your life, who wants to compromise the quality of their retirement? You don’t have to! Many Singaporeans are straying from the conventional meaning of retirement.
Instead of quitting your job altogether, work on an ad-hoc basis. With the rise of the gig economy, there are plenty of freelance or part-time positions that could give you additional income while giving you the freedom to enjoy life at a slower pace.
As a Grab driver, you could earn up to $7,200 per month, which would more than cover your estimated monthly expenses. Even better, you could ferry your grandchildren around without worry of additional car bills since you’re earning on the roads!
The question of retirement, then, isn’t if you have enough money. Instead, the question is: “are you willing to embrace a more active form of retirement?”
With all the benefits of an ad-hoc job, why not consider it for your retirement years?