Thinking of the Future: Tips on Preparing for Retirement in Malaysia
A solid retirement plan allows you to live your golden years free of financial worries while you enjoy your hobbies and spending time with loved ones.
A retirement plan is basically a long-term investment that you make in preparation for your older years. It assists you in building a plan that is able to provide you a steady income after retirement. Consequently, it is also referred to as a pension plan.
A solid retirement plan allows you to live your golden years free of financial worries while you enjoy your hobbies and spending time with loved ones. Additionally, it is necessary to consider inflation to ensure that your retirement plan stands the test of time.
Here are a few steps to help you plan out your retirement:
1. Set goals
The journey begins with planning. First, draft your goals out. It helps to have a clear picture of the life you want to live. Once you know what you want to achieve, you can reverse engineer your plan by planning out actionable steps that help to reach your goals. The ideal strategy should allow consistency on your monthly savings without feeling a financial pinch in your day-to-day life. It’s necessary to be realistic about how much you can allocate monthly, quarterly or yearly to your retirement plan. Nonetheless, you do have to consider career progression and inflation down the road.
2. Start early
The earlier you start, the better. A common misconception is that saving for retirement should only start in your late 30s or early 40s. It is wiser to start your plan as soon as you are financially able to. You may start small, and as you progress in your career, you can start allocating more savings to your retirement plan.
Some plans don’t always work out as we envisioned, so it is wise to have a backup plan. For instance you can invest in a retirement insurance plan as suggested by Insurance agents. By doing so you don't need to be financially dependent on your family or relatives. Being responsible over your own finances, allows you more freedom and control over your life.
3. Health and wellness
Health is Wealth. Apart from securing your finances, the most important factor to enjoying your retirement is health. Living a healthier lifestyle can be as simple as taking a walk around your neighbourhood, doing meditation and yoga. This allows you to stay active by keeping you on your feet. Besides exercise, our diets play a significant role in our health. Eating a nutritious and balanced diet is the best preventive measure from illnesses. Of course genetics plays a role, and if you are at risk of inherited illnesses, consider safeguarding yourself with an affordable and comprehensive medical insurance policy in Malaysia.
4. Insurance
The best type of financial protection that aids you during tough times is getting an insurance plan. It gives a sense of peace knowing that you are protected in the event of unforeseen circumstances.
You may consider looking for an endowment life insurance policy in Malaysia. With this policy, you pay a premium for a predetermined number of years (for example, between 3-15 years). Upon maturity (15-20 years), you will be able to credit the money back. In the event of the policy holder’s sudden demise before maturity, the payout is distributed to the beneficiaries.
5. Reduction in expenditure
Although you might feel like retirement is years away, reducing and limiting your current spending habits can result in larger retirement accounts in the future. Try going through your income and your monthly expenses, besides the compulsory expenses try identifying areas where you can actually cut down. You would actually be surprised to know how much you are able to save. Put that cash towards your retirement savings which your future self would thank you for.
The most important thing is to find an insurance plan that best suits your lifestyle, family and medical needs. With these tips, we hope it helps you to kick-start your retirement plan! If you’re looking for a trusted insurer, AmMetLife will be your partner in securing your retirement needs so that you can truly enjoy your golden years. Always with you, building a more confident future.
