Infographics on What is Retirement Planning and Examples


Retirement planning is about having a product or a plan that will gives you a stream of guaranteed income when you retired, no matter where you are, what you do or what condition you are in. You have to plan according to your retirement goals, know you risk appetite, when you want to retire, type of assets you can invest in and types of retirement investment strategy you prefer. Retirement planning should include determining your time horizons, estimating expenses of your daily and lifestyle needs, adequate insurance cover for medical and post medical recovery expenses. It also involves in assessing your risk tolerance, and doing estate planning. Retirement plans may evolve through the years, as your retirement goals changes and inflation also has a big effect on cost of living in the future. Thus, your portfolios should be rebalanced accordingly.


Infographics on Retirement Planning

The following are some infographics on retirement planning, as I want to make insurance easy to understand and financial planning a happy process. Visit my page on Retirement Planning for more information about retirement planning.







One of Retirement Planning Example: Living Expenses

According to Straits Times Singaporeans need $1,379 a month to meet basic living standard base on current value in year 2019.*

Example is base on the following scenario:

Name: Sally 
Current age: 35 years old
Retirement age: 65 years old
Retirement monthly income required: $1,379 (current value)
Retirement income payment duration: 20 years (till age 85, average Singaporean mortality age**)
Estimate yearly inflation rate: 3% per year

Retirement monthly income required at age 65: $3,347.19 (future value 30 yrs later)
Annual income required at age 65: $3,347.19 x 12 months = $40,166.28 (future value)
Total retirement income required: $40,166.28 x 20 years = $803,325.60

From the above calculation Selly total retirement income objective will be $803,325.60. What is your number?



One Last Thing

Retirement planning is about having a product or a plan that will gives you a stream of guaranteed income when you retiredno matter where you are, what you do or what condition you are in. While planning it should include your time horizonsexpenses of your future lifestyle needs, adequate medical insurance coverage. Rule of thumb is saving at least 20% of your annual income. Therefore, if you save lesser or start your retirement planning too late, you will not be able to reach your financial freedom goal at your retirement age. Retirement planning takes time, please seek help from your friendly financial consultant to help you with your retirement planning when required, or contact me for a holistic Insurance and Financial Planning.


Note: Opinions expressed are solely in Mr. Chan Kong Meng’s personal capacity and neither express the views or opinions of Prudential nor represent any professional advice in Mr. Chan Kong Meng’s capacity as a PACS representative.



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