A key part of retirement planning is to know how much one needs for their retirement. The answer varies by individual, and it depends largely on your income now and the lifestyle you want during retirement.
Here are some tips to help answer your retirement questions:
- Determine your retirement income – it should be about 80% of your final pre-retirement salary. That means if you make RM100,000 annually at retirement, you need at least RM80,000 per year to have a comfortable lifestyle after leaving the workforce
- When you plan to retire – the age you plan to retire can have a big impact on the amount you need to save. The longer you can postpone retirement, the lower your savings factor can be
- Identifying your investment returns – no one can guarantee how much they’ll earn in the long-term investment. However, we can look at long-term historical returns to get some ideas
- Diversify your investment – diversifying your investment will reduce the risk of negative returns
- Estimating your retirement duration – this will guide you on how much you’ll need to save for your retirement. It’s best to plan your savings for 25-30 years after your retirement age
The best investments for your retirement are those that let you get the most essential things in your future life. FWD Takaful offers a reliable investment plan for your retirement with FWD Invest First Plus. It magnifies your savings and supports your financial stability for a brighter future. Reach out to our Agents for more details.