Have You Saved Enough for Your Retirement?



Ask your self this, ‘when you finally decide to retire, do you think you are financially prepared?’.

This question can be answered according to–and with the help of–several concepts. Below mentioned, are perspectives that could give you a glimpse of what the answer would be. Saving money for for retirement may seem like a daunting task. Have you worked hard enough to save for your retirement, or do you still have to “plant more rice”? Understand each of these essential concepts and think about whether you can relate or not. If you think you do relate to most of these points mentioned, then most likely, you are on the right track. But if on most points you find it hard to relate yourself, NOW is always a good start.

1. Percentage

Generally speaking, as per rule, you need to at least save a total of 10 to 15 percent of your income monthly for your retirement and this should be as early as when you get your first job or when you’re on your 20’s. From then on, you should be familiar with 401k, 403b, or IRA. Take into consideration that your employer may also have its contribution for your pension. That contribution plus your own savings should not go less than 10% of your income. Write it down. Establishing a savings target to tell you your target cost set aside every month is a good idea to help you keep up with your spending. Update your target every year. The price of bread was never the same since 1989.

2. Increase from 70% to 85% According to the general guideline

At least S$70,000 to S$85,000 if you and your spouse earn S$100,000 annually since you should be able to replace 70% to 85% of your current income in retirement. This tactic may not be practical and doable. Here, it assumes that what you earn and what your spend are almost the same. A proposition telling you that the money you make only goes to all your expenses. Thus, I suggest to modify this particular point by inspecting thoroughly your current expenses. Again, write them down so you can examine each of your expenses if it is necessary or unnecessary.

3. Estimate based on your current spending Picture yourself in your retirement.

How would you want to live the days of your retirement? How luxurious do you want your retirement to be? With these questions in mind, you will have the idea on the approximate cost need to save for your retirement. Estimating how much you need for your retirement is a wise tactic to keep you up with your savings. With the help of your previous noted and written expenses of the past month or year, you can approximately guess how much money, with inflation being considered, do you want to spend for your retirement. Consider Rule #2. For example, if your projected retirement cost exceed Social Security and pensions by S$20,000 a year, you might need a set savings of S$300,000 to S$400,000 to bridge the gap. Too much you might say but remember that you have expenses on your list today that you will not have when you retire such as that car loan you pay every month with annual interest rates, house mortgages that haunts you monthly and that money you owed from a money lender just so your account will grow and mature. On the other hand, you may also have expenses on your retirement that you’re not paying yet today such as travels and other forms of leisure such as joining clubs and sponsorship, not to mention possible health issues that you may have when you age. Thus, it may be safe to assume that your target budget for retirement is the same amount you are spending at present.

There are lots of online retirement calculator tools that could help you decide how to estimate better your retirement financial plan. One of such tool is found in Social Security Administration’s website where you can obtain your expected Social Security payouts. Using an online retirement calculator will help you see your current contributions and it may also serve as your guide to keep you on-track of your goals.


Out of those three concepts mentioned above, do you see yourself leaning on the favorable side or more likely on the less favorable corner? If as early as today, you are saving at least ten to fifteen percent of your income, then you have nothing to worry, you are on the safe side. But if not, always remember that “now” is always a good time to start saving like that ant saving for the rainy days.

Do not be discouraged that you are not saving enough for now. You may still be in the early age of your professional career and your income will continue to grow as you progress with your professional career and will allow you to set aside more for your future. Examine your expenses and chip away wasteful habits.

Research on more ways how to pump up your savings.. Get a more comprehensive insight by estimating your expenses during your retirement. Consider investing on some of those expenses early so as to help contribute to your retirement plan.

Try to make most of your earnings to savings as much as possible. Creating a budget always helps by giving you a clearer picture of where you are in your financial status. You may ask and seek for a professional advise or better yet, revise a well formulated budget of experienced people. Don’t forget to update your budget too because revisions you make will affect on how your new urge to commit on saving. Changes will also be obvious compared to your last budget plan depending on the weight of your changing interest.

There may also be other opportunities that can boost your savings. Investing in long-term projects may be as fruitful as these companies promise. A bonus from your regular paying job can also have a favorable effect on your saving. Inheritance, as lucky and instantaneous as it may sound, also can make a huge impact on your savings. Instead of spending that money that pops out of nowhere, why not think of how you want your retirement will be and just save it for that purpose? You wouldn’t want to spend those days stagnant and boring, right? Read more on Credit Hub – credithubcapital.sg

Leave a Reply

Your email address will not be published. Required fields are marked *