| Standard Chartered Bank |
PUTTING money away for your retirement is one of the principles of sound financial planning.
Retirement is something we all work and save for, as it is a time to relax, to sit back and appreciate the finer things of life and a time to actively pursue our personal interests without the distractions of having to go to work.
Or is it a time of concern, panic and frustration?
Because no one has that crystal ball to tell us how long we will live, how long we will be retired nor how much money we will need to survive, it could be a period of concern for those who are ill-prepared.
So the question arises – how much money is enough to sustain the lifestyle that you want when a regular salary cheque is not coming in every month?
Retirement Income vs Salaried Income
While retirement usually means that people are no longer actively engaged in the workforce and therefore no longer receiving a salary, it doesn’t mean they are no longer receiving an income.
Indeed, well-prepared retirees receive regular income from their investments and/or property returns.
What’s the Future Done For Me?
For many of us, retirement is something we all do later in life, so why worry about it now?
While for many of us, retirement may be along way off, we certainly need to start planning for retirement from the very day we start work as the funds needed to help us enjoy our retirement are raised while we are gainfully employed.
Start Savings for your Desired Retirement Lifestyle – Individualised Financial Planning
Financial planning is another essential element of financial management. Sound financial management works best with active participation from individuals and their professional advisor.
Standard Chartered Bank Brunei offers the financial support for individuals to take control of their finances at all stages of their life.
Because we all lead different lifestyles and have various financial requirements to see us through life, there is no one plan that will work for all.
Therefore, personalised and individualised financial plans are important features of the financial services and packages offered by your bank.
While many Bruneians contribute to TAP and that these funds make retirement easier, these accumulated savings may not be enough to sustain the lifestyle required by many retirees.
Therefore, the sooner people start supplementing their TAP savings through additional financial planning; the easier it will be in later life.
Determining your current financial health is the first step as it identifies your net worth and analyses what you do with this wealth.
From this it is important to identify your goals in life and what assets you will need to achieve these goals.
The final step is to chart out with your financial advisor, a total money management solution that is customised to your present and future financial requirements.
Compounding Your Interest
One of the important criteria of a wealth management plan is that of compound interest. This means that re-invested interest rates themselves receive interest – ie interest on your interest.
Another important variable for retirees to appreciate is that of inflation.
This means a deterioration of purchasing power so, we might need twice as much money or more, just to keep up with the cost of living.
Retirement Should Be Fun
As we progress through life our priorities change and for many, appreciating the uncertainties of retirement are difficult when we are young.
However, it can be assumed that as we move through life we become less mobile and concerns about personal health become paramount.
Retirement is less enjoyable if there are additional burdens like a lack of funds to pay for the essential elements of good living.
Just as an umbrella is appropriate protection for a rainy day, professional financial planning like that offered at Standard Chartered Bank is essential for enjoying your retirement.
This article is for general information purposes only and while the information in it is believed to be reliable, it has not been independently verified by us. You are advised to exercise your own independent judgement with the contents in this article.