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10 Smart Financial Tips To Help You Prep For Retirement That EVERY Millennial Should Read
I remember getting told in business class in high school that I should start saving for my retirement on the day I get my very first paycheque… Needless to say, I didn’t!
But anyone who has retired will offer you the very same advice… It’s NEVER too early to start planning for your retirement. Everyone has priorities right now, but retirement planning is one of the BEST things you can do for yourself. If you’re living a good life now, you should live equally well during retirement.
Ready to start?! Here are 10 smart tips to help you financially prepare for retirement
10. Make a list: Kickstart your financial planning roadmap by picturing what you WANT from retirement
There’s nothing like making a list to feel like you’ve accomplished something… AMIRITE?! Jot down what you want during your retirement, maybe a dream holiday, travelling abroad to spend time with family, a passion you want to pursue? And then, estimate how much money you would need to fulfil these things. Do you have the funds already?
9. Budget, budget, budget
This is the mother of all tips for effective financial planning. Keep a spreadsheet (oh, the joys!) to estimate your essential and non-essential expenses for every month.
Essential expenses include rent, groceries, insurance and medicine. Non-essential expenses include cruises, brunches, golf lessons, you know, the fun stuff! This will give you an idea of the monthly income you would need after you stop working.
8. You might live till you’re 90 – plan for it!
The average lifespan is increasing, with many people living until they’re 90 and beyond. These are your golden years, the years you won’t have a boss or a job to answer to, (woohoo!) but that will also be a lotta’ years not earning a full salary. Having strong financial support will make it a lot easier to enjoy your golden years.
7. Invest, folks! Put your money to work so you don’t have to
This is the smart part. Explore all the options that can provide you with a regular monthly income – from property to insurance, from investments to retirement plans. We’ve talked before about wealth specialists, these are the people who can help you start your journey.
6. One word: Diversify
You have a better chance of making good on your investments, the more diverse your portfolio is. In plain English, don’t put all of your eggs in one basket. The future is uncertain and you have to factor in inflation rates. With the right guidance, you can choose to put your money in investments, insurance plans and retirement plans, the options are endless!
For guidance on creating your retirement plan, reach out to one of their Wealth Specialists.
5. Think of future healthcare expenses
Whatever country you choose to retire, you’ll need to consider healthcare costs, which have historically risen FASTER than inflation. Whether it’s for you or your loved ones, emergency medical care costs can crop up at any time, and aside from your rainy-day fund, you need to plan for medical costs too.
4. Insurance? Check! Just make sure it’s the right one for you
In retirement, insurance can help take care of the extras, like medical emergencies. Check what you want to be covered, (protection in case of death, disability, or illness) and explore investment-linked policies which provide returns as well as protection. Prepping in advance is key!
3. These are your GOLDEN YEARS – Have funds set aside for your hobby
Photography, golf, sailing, hiking, travel, sky-diving?! (Dream big, peeps!) Have some dirhams set aside so you can truly explore your passion later in life.
2. Be the one who’s ready to support your family
How amazing to watch your family grow during your retirement? You’ll be there for them emotionally and should you wish to (with the right planning), you could be able to support your children and grandchildren financially, too!
1. Make. A. Will.
It’s never too early and if you make one now, you can always change it later. The key thing is to ensure your hard-earned money goes into the right hands.
Future plan with the help of the specialists
Standard Chartered wants to help you achieve all of the above!
For guidance on crafting your retirement plan, reach out to one of their Wealth Specialists.
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